Juan is a sole taxpayer. He visits his office for tax advice in early December 2016. John predicted that his taxable income for 2016 would be $37,000. His 2017 taxable income is forecast to be $45,000. John feels lucky and wants to donate $6,000 to charity. The donation will reduce his taxable income by $6,000 (we'll learn about charitable deductions later this semester). John's Aunt Betsy told him to make the donation by 12/31/16 so he can save taxes on his 2016 tax return. 

Questions

1. How much will Juan save in 2016 federal income taxes by making a donation in 2016?
2. Did Aunt Betsy give John good advice? 
3. What would be her advice to John about her planned giving?