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. With IRA Contribution Without IRA Contribution Gross income 60,000 60,000 Contribution to IRA (5,000) 0 AGI 55,000 60,000 Itemized deductions: Charitable contribution 6,000 6,000 State income taxes 4,000 $ 4,000 Medical expenses 6,000 $ 1,500 Casualty loss 9,500 9,500 X Total itemized deductions 21,000 25,500 X The $5,000 IRA contribution would increase Maria's itemized deductions by $ As a result, the $5,000 IRA contribution reduces her taxable income by $