Victor is in the 28% tax bracket.
a. How much will a $900 tax credit save him?
b. how much will a $900 charitable contribution save him if he itemized his deductions?​

Respuesta :

Incomplete question. I've made some assumptions to provide clarity.

Answer:

a. $45,743.07

b. $44,843.07

Step-by-step explanation:

Let's assume Victor is a single filer with an income of $100,000.

Using the 2017 tax bracket rates for single filers, Victor would be expected to pay:

- 10 percent on the first $9,325 = 10% x 9525 =$932.5

- plus 15 percent of the amount between $9,326 and $37,950 (37950-9326) x 15% = $4293.6

- plus 25 percent of the amount between $37,951 and $91,900 (91900-37,951 ) x25% = $13487.25

- plus 28 percent of the amount over $91,901-$191,650 (191650-91901) x 28% = 27929.72

Total=  $46,643.07

Minus $900 tax credit= $46,643.07-$900= $45,743.07

Minus $900 charitable contribution = $45,743.07-$900= $44,843.07