Michele Walsh is considering an additional charitable contribution of $1,500 to a tax-deductible charity,bringing her total itemized deductions to $16,000.If Michele is in a 24 percent tax bracket,how much will this $1,500 contribution reduce her taxes?

Question

Quizplus · Accepted Answer

The $1,500 contribution would reduce Michele's taxable income by $1,500. Being in the 24 percent tax bracket means she would save 24% of $1,500 in taxes, which is $1,500 * 0.24 = $360.

Michele Walsh Is Considering an Additional Charitable Contribution of $1,500