Question

Michele Walsh is considering an additional charitable contribution of $4,800 to a tax-deductible charity, bringing her total itemized deductions to $14,750. If Michele is single, is in a 35 percent tax bracket, and is not subject to a phase out of deductions, how much will this $4,800 contribution reduce her taxes?

Answer 1

Answer:

Tax reduction will be equal to $1,680.

Explanation:

Michele Walsh is single, is in a 35 percent tax bracket, and is not subject to a phase out of deductions.

She is considering an additional charitable contribution of $4,800 to a tax-deductible charity.

Reduction in taxes

= $Contribution\ \times\ tax\ percentage$

= $\ 4,800\ \times\ \frac{35}{100}$

= $1,680