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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

  1. 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

  1. What is the 2021 tax owed for the following taxpayer for each situation?
  2. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution?
  3. 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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