Question 6

If Jose thought that overall tax rates and his marginal tax bracket would be the same for 2019 and 2020, then:

a)Jose would want to pay the expense in 2019

b)Jose would want to pay the expense in 2020

c)It wouldn't matter if Jose pays the expense in 2019 or 2020

Question 7

Arjun, single, has an average tax rate of 10.8%, an effective tax rate of 9.9%, and a marginal tax rate of 22% in 2018. If Arjun generates an additional $1,000 tax deduction which lowers his taxable income by $1,000, what is Arjun's federal income tax savings as a result of the $1,000 deduction?