Question
Consider the 2020 information for a single taxpayer without children: 1 2 wages income.....................100000.....................100000 tax free income..................3000............................3000 medical expenses.............1200..............................1200 state taxes paid..................2500............................2500 local property taxes...........4000..............................0
Consider the 2020 information for a single taxpayer without children:
1 2
wages income.....................100000.....................100000
tax free income..................3000............................3000
medical expenses.............1200..............................1200
state taxes paid..................2500............................2500
local property taxes...........4000..............................0
mortgage interest...............3100..............................0
charitable contributions....2000.............................0
a. What is the total taxes owed under each scenario?
b. How much did the taxpayer save in taxes under scenario A due to the charitable contribution?
c. In each scenario, what is the effective tax rate based on AGI?
d. In each scenario, what is the marginal tax rate?
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