Valerie is a cash-basis, calendar-year taxpayer. Her salary is $95,000, and she is single. She plans to purchase a residence in 2022. She anticipates her property taxes and interest will total $7,700. Each year, Valerie contributes approximately $4,200 to charity. Her other itemized deductions total approximately $3,200 for each year. For purposes of this problem, assume that 2022 tax rates and standard deductions are the same as for 2021. (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Single filing status.) Read the requirements Requirement a. What will her gross tax be in 2021 and 2022 if she contributes $4,200 to charity in each year? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 95000 2022 95000 Salary Minus: Standard deduction or itemized deductions 3200 3200 Taxable income Gross tax Requirement b. What will her gross tax be in 2021 and 2022 if she contributes $8,400 to charity in 2021 but makes no contribution in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 2022 Minus: Taxable income Gross tax Requirement c. What will her gross tax be in 2021 and 2022 if she makes no contribution in 2021 but contributes $8,400 in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (If an input field is not used in the table leave the input field empty; do not select a label or enter a zero. Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the Requirement c. What will her gross tax be in 2021 and 2022 if she makes no contribution in 2021 but contributes $8,400 in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (If an input field is not used in the table leave the input field empty; do not select a label or enter a zero. Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 2022 Minus: TULI Taxable income Gross tax Requirement d. Alternative c results in a lower tax than either a or b. Why? A. By contributing the $8,400 in 2022, Valerie is able to deduct the standard deduction in 2021 and 2022. This results in a lower tax for 2021 and 2022. O B. By contributing the $8,400 in 2021, Valerie is able to deduct the entire amount in 2021. This results in a lower tax since her income is taxed at a higher tax rate in 2021. OC. By contributing the $8,400 in 2022, Valerie is able to deduct the entire amount. If $4,200 is contributed in each year, only the 54,200 contributed in 2022 is deductible. No tax benefit is received in 2021 because the contribution is less than the standard deduction. If $8,400 is contributed in 2021 then no tax benefit is received O D. By contributing the $8,400 in 2021, Valerie is able to deduct the entire amount. If $4,200 is contributed in each year, only the $4,200 contributed in 2021 is deductible. No tax benefit is received in 2022 because the contribution is less than the property taxes and interest deduction. If $8,400 is contributed in 2022 then no tax benefit is received. 0 0 $ 5 STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. 25,100 18,800 $ 12,550 $ 12,550 $1,350" $1,700* LEA 200 If taxable income is: Not over $9,950 Over $9,950 but not over $40,525 Over $40,525 but not over $86,375 Over $86,375 but not over $164,925 Over $164,925 but not over $209,425 Over $209,425 but not over $523,600 Over $523,600 Single The tax is: . 10% of taxable income. .$995.00 + 12% of the excess over $9,950. . $4,664.00 + 22% of the excess over $40,525. $14,751.00 + 24% of the excess over $86,375. ... $33,603.00 + 32% of the excess over $164.925. . $47,843.00 + 35% of the excess over $209,425. . $157,804.25 + 37% of the excess over $523,600. + e Valerie is a cash-basis, calendar-year taxpayer. Her salary is $95,000, and she is single. She plans to purchase a residence in 2022. She anticipates her property taxes and interest will total $7,700. Each year, Valerie contributes approximately $4,200 to charity. Her other itemized deductions total approximately $3,200 for each year. For purposes of this problem, assume that 2022 tax rates and standard deductions are the same as for 2021. (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Single filing status.) Read the requirements Requirement a. What will her gross tax be in 2021 and 2022 if she contributes $4,200 to charity in each year? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 95000 2022 95000 Salary Minus: Standard deduction or itemized deductions 3200 3200 Taxable income Gross tax Requirement b. What will her gross tax be in 2021 and 2022 if she contributes $8,400 to charity in 2021 but makes no contribution in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 2022 Minus: Taxable income Gross tax Requirement c. What will her gross tax be in 2021 and 2022 if she makes no contribution in 2021 but contributes $8,400 in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (If an input field is not used in the table leave the input field empty; do not select a label or enter a zero. Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the Requirement c. What will her gross tax be in 2021 and 2022 if she makes no contribution in 2021 but contributes $8,400 in 2022? Begin by calculating Valerie's taxable income for 2021 and 2022, then calculate the gross tax for each year. (If an input field is not used in the table leave the input field empty; do not select a label or enter a zero. Use the 2021 tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) 2021 2022 Minus: TULI Taxable income Gross tax Requirement d. Alternative c results in a lower tax than either a or b. Why? A. By contributing the $8,400 in 2022, Valerie is able to deduct the standard deduction in 2021 and 2022. This results in a lower tax for 2021 and 2022. O B. By contributing the $8,400 in 2021, Valerie is able to deduct the entire amount in 2021. This results in a lower tax since her income is taxed at a higher tax rate in 2021. OC. By contributing the $8,400 in 2022, Valerie is able to deduct the entire amount. If $4,200 is contributed in each year, only the 54,200 contributed in 2022 is deductible. No tax benefit is received in 2021 because the contribution is less than the standard deduction. If $8,400 is contributed in 2021 then no tax benefit is received O D. By contributing the $8,400 in 2021, Valerie is able to deduct the entire amount. If $4,200 is contributed in each year, only the $4,200 contributed in 2021 is deductible. No tax benefit is received in 2022 because the contribution is less than the property taxes and interest deduction. If $8,400 is contributed in 2022 then no tax benefit is received. 0 0 $ 5 STANDARD DEDUCTION Filing Status Married individuals filing joint returns and surviving spouses Heads of households Unmarried individuals (other than surviving spouses and heads of households) Married individuals filing separate returns Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,100. 25,100 18,800 $ 12,550 $ 12,550 $1,350" $1,700* LEA 200 If taxable income is: Not over $9,950 Over $9,950 but not over $40,525 Over $40,525 but not over $86,375 Over $86,375 but not over $164,925 Over $164,925 but not over $209,425 Over $209,425 but not over $523,600 Over $523,600 Single The tax is: . 10% of taxable income. .$995.00 + 12% of the excess over $9,950. . $4,664.00 + 22% of the excess over $40,525. $14,751.00 + 24% of the excess over $86,375. ... $33,603.00 + 32% of the excess over $164.925. . $47,843.00 + 35% of the excess over $209,425. . $157,804.25 + 37% of the excess over $523,600. + e