Michele Walsh is considering an additional charitable contribution of $2,000 to a tax-deductible charity,bringing her total itemized deductions to $16,000.If Michele is in a 28 percent tax bracket,how much will this $2,000 contribution reduce her taxes?

Question

Quizplus · Accepted Answer

Michele's total itemized deductions now exceed the standard deduction for her tax bracket, which means that the additional $2,000 contribution will be fully tax-deductible at a rate of 28%. Therefore, the contribution will reduce her taxes by 28% of $2,000, which is $560.

Michele Walsh Is Considering an Additional Charitable Contribution of $2,000