Shara's 2014 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 2014. By how much did Shara's marginal tax rate decline simply because of the donation?

Question

Quizplus · Accepted Answer

Charitable contributions reduce taxable income, but they do not directly affect the marginal tax rate. The marginal tax rate is determined by the tax bracket, which is based on taxable income levels.

Shara's 2014 Taxable Income Is $42,000 Before Considering Charitable Contributions