Mara, age 32, earns $60,000 working in 2021. She has no other income. Her medical expenses for the year total $6,000. During the year, she suffers a casualty loss of $9,500 when her apartment is damaged by flood waters (part of a Federally declared disaster area). Mara contributes $6,000 to her church and pays $4,000 of state income taxes. On the advice of her friend, Mara is trying to decide whether to contribute $5,000 to a traditional IRA. Complete the table to show the effect the IRA contribution would have on Mara's itemized deductions.

Complete the table to show the effect the IRA contribution would have on Mara's itemized deductions.

		With IRA Contribution			Without IRA Contribution
Gross income
Contribution to IRA		(5,000)			0
AGI
Itemized deductions:
	Charitable contribution
	State income taxes
	Medical expenses
	Casualty loss
Total itemized deductions

b. The $5,000 IRA contribution would ______ Mara's itemized deductions by _________. As a result, the $5,000 IRA contribution reduces her taxable income by ______