Shara's 2013 taxable income is $42,000 before considering charitable contributions.Shara is a single individual.She makes a donation of $5,000 to the American Heart Association in December 2013.By how much did Shara's marginal tax rate decline simply because of the donation?

Question

Quizplus · Accepted Answer

Charitable contributions can reduce taxable income, but they do not directly affect the marginal tax rate. The marginal tax rate is determined by the tax brackets, and a donation does not change the rate at which the last dollar of income is taxed.

Shara's 2013 Taxable Income Is $42,000 Before Considering Charitable Contributions