Doreen has no special circumstances. Sanja is paying a mortgage on a condominium. She paid $8,000 in mortgage interest and $950 in property tax during the tax year. Ben bought new energy-efficient windows. Gross income Adjusted gross income Deductions Exemptions Taxable income Tax Tax credits Total federal income tax Doreen $36,400 $36,400 $5,700 $3,650 $27,050 $3,635 $0 $3,635 Sanja $36,400 $36,400 $8,950 $3,650 $23,800 $3,155 $0 $3,155 Ben $36,400 $36,400 $5,700 $3,650 $27,050 $3,635 $1,300 $2,335 Questions to Think About 1. Which taxpayer received a tax credit that lowered the tax due? 2. (a) What was the value of that tax credit? (b) How did the taxes that taxpayer owed compare to the taxes owed by Doreen? (c) Based on these examples, which is better for a taxpayer-a deduction or a tax credit? Why? 3. (a) Which taxpayer itemized deductions? How can you tell? (b) What was the impact of itemizing on that taxpayer's taxes