In 2015, a single worker had gross income of $40,000. She made a $5,000 contribution to a tax-deferred retirement plan offered by her employer. She can claim one personal exemption for herself, and has the following deductible payments: $1,000 in mortgage interest, $1,000 in state income taxes, and $500 in property taxes. Using the federal income tax forms from 2015, answer the following questions:

a. Should the worker itemize deductions, or claim the standard deduction? Why?

b. Calculate the workers adjusted gross income, taxable income, and regular federal income tax liability.