Mara, age 32, earns $60,000 working in 2022. 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		$fill in the blank 1			$fill in the blank 2
Contribution to IRA		(5,000)			0
AGI		$fill in the blank 3			$fill in the blank 4
Itemized deductions:
	Charitable contribution	$fill in the blank 5			$fill in the blank 6
	State income taxes	$fill in the blank 7			$fill in the blank 8
	Medical expenses	$fill in the blank 9			$fill in the blank 10
	Casualty loss	$fill in the blank 11			$fill in the blank 12
Total itemized deductions		$fill in the blank 13			$fill in the blank 14

The $5,000 IRA contribution would

decreaseincrease

Mara's itemized deductions by $fill in the blank 16. As a result, the $5,000 IRA contribution reduces her taxable income by $fill in the blank 17.