Question
2. John is a single taxpayer. He visits your office for some tax advice in early December 2016. John forecasted his 2016 taxable income to
2. John is a single taxpayer. He visits your office for some tax advice in early December 2016. John forecasted his 2016 taxable income to be $ 37,000. His 2017 taxable income is forecasted at $ 45,000. John is felling fortunate and wants to donate $ 6,000 to a charity. The donation will lower his taxable income by $ 6,000 (we will learn about charitable deductions later this semester). Johns Aunt Betsy told him to make the donation before 12/31/16 so he can save taxes on his 2016 tax return. a. How much 2016 federal income tax will John save by making a 2016 donation? b. Did Aunt Betsy give John good advice? What would your advice be to John about his planned donation?
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