Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of their family. Instead of this deduction, individuals may claim the first $1,000 of the cost as a nonrefundable tax credit (no carryforward or carryback of any excess credit). In each of the following situations, advise the taxpayer as to whether she should take the deduction or credit. In each situation the taxpayer is single. Assume the taxable year is 2021. Use Individual Tax Rate Schedules and Standard Deduction Table. Required: a. Compute Ms. Margo's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $80,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has no itemized deductions. b. Compute Ms. Nelson's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $38,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $14,000 itemized deductions. c. Compute Ms. Omar's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $195,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $13,200 itemized deductions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Ms. Margo's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $80,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has no itemized deductions. Amount Ms. Margo's additional tax savings if she elects the credit Ms. Margo's additional tax savings if she elects the deduction Required A Required B Required C Compute Ms. Nelson's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $38,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $14,000 itemized deductions. Amount Ms. Nelson's additional tax savings if she elects the credit Ms. Nelson's additional tax savings if she elects the deduction Required A Required B Required C Compute Ms. Omar's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $195,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $13,200 itemized deductions. Amount Ms. Omar's additional tax savings if she elects the credit Ms. Omar's additional tax savings if she elects the deduction Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is Not over $19,900 Over $19.900 but not over $81,050 Over $81,050 but not over $172,750 Over $172.750 but not over $329,850 Over $329,850 but not over $418,850 Over S418.850 but not over $628,300 Over $628,300 The tax is 10% of taxable inca ncome $1.990.00 + 12% of excess over $19,900 $9,328.00 + 22% of excess over $81,050 $29,502.00 +24% of excess over $172.750 $67,206.00 + 32% of excess over $329,850 $95.686.00 + 35% of excess over $418.850 $168.993.50 +37% of excess over $628,300 Married Filing Separately If taxable income is Not over $9,950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164.925 but not over $209,425 Over $209,425 but not over $314.150 Over $314.150 The tax is 10% of taxable income $995.00 + 12% of excess over $9,950 $4.664.00 +22% of excess over $40,525 $14.751.00 +24% of excess over $86,375 $33.603.00 +32% of excess over $164.925 $47,843.00 + 35% of excess over $209,425 $84,496.75 +37% of excess over $314,150 - Head of Household If taxable income is Not over $14,200 Over $14.200 but not over $54,200 Over $54,200 but not over $86,350 Over $86,350 but not over $164.900 Over $164.900 but not over $209,400 Over $209.400 but not over $523,600 Over $523,600 The tax is 10% of taxable income $1,420.00 + 12% of excess over $14.200 S6.220.00 + 22% of excess over $54,200 $13,293.00 +24% of excess over $86,350 $32.145.00 + 32% of excess over $164.900 $46,385.00 + 35% of excess over $209,400 $156,355.00 + 37% of excess over $523,600 Single If taxable income is Not over $9.950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164.925 but not over $209,450 Over $209,450 but not over $523,600 Over $523,600 The tax is 10% of taxable income $995.00 + 12% of excess over $9.950 $4.664.00 + 22% of excess over $40.525 $14.751.00 + 24% of excess over $86,375 $33,603.00 +32% of excess over $164.925 $47,843.00 + 35% of excess over $209,425 $157,804.25 +37% of excess over S523.600 Married filing jointly and surviving spouses Married filing separately Head of household Single $25.100 12.550 18.800 12.550 Assume that the tax law allows individuals to claim an itemized deduction for the cost of music lessons for the taxpayer or any member of their family. Instead of this deduction, individuals may claim the first $1,000 of the cost as a nonrefundable tax credit (no carryforward or carryback of any excess credit). In each of the following situations, advise the taxpayer as to whether she should take the deduction or credit. In each situation the taxpayer is single. Assume the taxable year is 2021. Use Individual Tax Rate Schedules and Standard Deduction Table. Required: a. Compute Ms. Margo's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $80,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has no itemized deductions. b. Compute Ms. Nelson's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $38,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $14,000 itemized deductions. c. Compute Ms. Omar's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $195,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $13,200 itemized deductions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute Ms. Margo's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $80,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has no itemized deductions. Amount Ms. Margo's additional tax savings if she elects the credit Ms. Margo's additional tax savings if she elects the deduction Required A Required B Required C Compute Ms. Nelson's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $38,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $14,000 itemized deductions. Amount Ms. Nelson's additional tax savings if she elects the credit Ms. Nelson's additional tax savings if she elects the deduction Required A Required B Required C Compute Ms. Omar's additional tax savings if she elects to take the credit and her additional tax savings if she elects the deduction. She has $195,000 AGI. Before consideration of the $5,000 cost of her music lessons, she has $13,200 itemized deductions. Amount Ms. Omar's additional tax savings if she elects the credit Ms. Omar's additional tax savings if she elects the deduction Individual Tax Rate Schedules Married Filing Jointly and Surviving Spouse If taxable income is Not over $19,900 Over $19.900 but not over $81,050 Over $81,050 but not over $172,750 Over $172.750 but not over $329,850 Over $329,850 but not over $418,850 Over S418.850 but not over $628,300 Over $628,300 The tax is 10% of taxable inca ncome $1.990.00 + 12% of excess over $19,900 $9,328.00 + 22% of excess over $81,050 $29,502.00 +24% of excess over $172.750 $67,206.00 + 32% of excess over $329,850 $95.686.00 + 35% of excess over $418.850 $168.993.50 +37% of excess over $628,300 Married Filing Separately If taxable income is Not over $9,950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164.925 but not over $209,425 Over $209,425 but not over $314.150 Over $314.150 The tax is 10% of taxable income $995.00 + 12% of excess over $9,950 $4.664.00 +22% of excess over $40,525 $14.751.00 +24% of excess over $86,375 $33.603.00 +32% of excess over $164.925 $47,843.00 + 35% of excess over $209,425 $84,496.75 +37% of excess over $314,150 - Head of Household If taxable income is Not over $14,200 Over $14.200 but not over $54,200 Over $54,200 but not over $86,350 Over $86,350 but not over $164.900 Over $164.900 but not over $209,400 Over $209.400 but not over $523,600 Over $523,600 The tax is 10% of taxable income $1,420.00 + 12% of excess over $14.200 S6.220.00 + 22% of excess over $54,200 $13,293.00 +24% of excess over $86,350 $32.145.00 + 32% of excess over $164.900 $46,385.00 + 35% of excess over $209,400 $156,355.00 + 37% of excess over $523,600 Single If taxable income is Not over $9.950 Over $9.950 but not over $40,525 Over $40.525 but not over $86,375 Over $86,375 but not over $164.925 Over $164.925 but not over $209,450 Over $209,450 but not over $523,600 Over $523,600 The tax is 10% of taxable income $995.00 + 12% of excess over $9.950 $4.664.00 + 22% of excess over $40.525 $14.751.00 + 24% of excess over $86,375 $33,603.00 +32% of excess over $164.925 $47,843.00 + 35% of excess over $209,425 $157,804.25 +37% of excess over S523.600 Married filing jointly and surviving spouses Married filing separately Head of household Single $25.100 12.550 18.800 12.550