Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductions, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Your deductible expenditures $4146 for contributions to charity and $635 for state income taxes. Your filing status entitles you to a standard deduction of $6100. Should you itemize your
Deductions rather than claiming the standard deduction? If so, what is the difference?

Question

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductions, and Exemptlons**

- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$, which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$.
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Your deductible expenditures $4146 for contributions to charity and $635 for state income taxes. Your filing status entitles you to a standard deduction of $6100. Should you itemize your
Deductions rather than claiming the standard deduction? If so, what is the difference?

Quizplus · Accepted Answer

The total itemized deductions ($4146 + $635 = $4781) are less than the standard deduction ($6100), so you are better off claiming the standard deduction.

Solve the Problem 15%15 \%15% Marginal Rate Affects Income Starting At $8925\$ 8925$8925

Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$