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