Question

Carlos is in the 12% tax bracket. Over the course of the year, he paid $2,000 in student loan interest. This $2,000 decrease in his taxable income will save him how much in taxes HELP PLS!!

Answer 1

Answer:

The $2,000 decrease in Carlos's taxable income will save him

$= \frac{12}{100} \times \ 2000 = \ 240.$

Step-by-step explanation:

i) Carlos is in the 12% tax bracket.

ii)The $2,000 decrease in Carlos's taxable income will save him

$= \frac{12}{100} \times \ 2000 = \ 240.$

Answer 2

This $2,000 decrease in his taxable income will save him $240.

Taxable income

Using this formula

Decrease in taxable income=Tax rate÷Loan interest

Where:

Tax rate=12%

Loan interest=2,000

Let plug in the formula

Decrease in taxable income=0.12×2,000

Decrease in taxable income=$240

Inconclusion this $2,000 decrease in his taxable income will save him $240.

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