Question
There are two distinct situations: Situation A Situation B Status, No children Single Single Wage Income 60,000 200,000 Medical Cost paid 4,100 4.200 State Income
- There are two distinct situations:
Situation A | Situation B | |
Status, No children | Single | Single |
Wage Income | 60,000 | 200,000 |
Medical Cost paid | 4,100 | 4.200 |
State Income tax paid | 2,580 | 8,300 |
Property taxes paid | 0 | 7,700 |
Mortgage interest | 0 | 11,900 |
Charitable Contributions | 940 | 2,140 |
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)
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Econometric Analysis
Authors: William H. Greene
5th Edition
130661899, 978-0130661890
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