Mr. and Mrs. Upton's marginal tax rate on their joint return is 33%. This year, their itemized deductions totaled $13,400, and their standard deduction (MFJ) was $11,900. Compute their incremental tax savings from their itemized deductions.

Question

Quizplus · Accepted Answer

The incremental tax savings is the difference between itemized deductions and the standard deduction, multiplied by the marginal tax rate: ($13,400 - $11,900) * 33% = $495.

Mr and Mrs