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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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