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Schedule A: Itemized Deductions Line 1: Medical Amount spent 4,100 4,200 Line 2: AGI 60,000 200,000 Line 3: 7.5% of AGI (60K * 7.5%) 4,500

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Schedule A: Itemized Deductions
Line 1: Medical Amount spent 4,100 4,200
Line 2: AGI 60,000 200,000
Line 3: 7.5% of AGI (60K * 7.5%) 4,500 15,000
Line 4: Medical deduction (4,100 below threshold 0 0
Line 5a: State income or sales tax 2,580 8,300
Line 5b: Real estate taxes
Line 5c: Personal property taxes 0 7,700
Line 5d: Total taxes
Line 5e: Smaller of 5d or 10,000
Line 6: Other Taxes
Line 7: Line 5e + Line 6
Line 8a: Home mortgage interest 0 11,900
Lines 8b,c,d (all zero) 0 0
Line 8e: Line 8a + zero 0 11,900
Line 9: Investment interest
Line 10: Lines 8e + Line 9 or Total interest
Line 11: Gifts to charity by cash or check 940 2,140
Line 12: Other than cash or check
Line 13: Carryover from prior year
Line 14: Add Lines 11 to 13: total Charity
Line 15: Casualty
Line 16 Other
Line 17: Total itemized
Greater of Line 17 or standard

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3. There are two distinct situations: Situation A Single 60,000 4,100 Status, no children Wage Income Medical costs paid State Income taxes paid Property taxes paid Mortgage Interest Charitable contributions Situation B Single 200,000 4,200 8,300 7,700 11,900 2,140 2,580 0 0 940 a. What is the 2021 tax owed for the following taxpayer for each situation? b. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution? C. For each situation, what is the tax rate based on? Taxable income (tax owed over tax able income) Marginal rate (marginal rate) o O 3. There are two distinct situations: Situation A Single 60,000 4,100 Status, no children Wage Income Medical costs paid State Income taxes paid Property taxes paid Mortgage Interest Charitable contributions Situation B Single 200,000 4,200 8,300 7,700 11,900 2,140 2,580 0 0 940 a. What is the 2021 tax owed for the following taxpayer for each situation? b. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution? C. For each situation, what is the tax rate based on? Taxable income (tax owed over tax able income) Marginal rate (marginal rate) o O

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