Molly and Justin are considering contributing $5,000 to their favorite,tax deductible charity.This contribution will bring their total itemized deductions to $20,000.Assuming they are in the 28% marginal tax bracket,how much will they save in taxes by contributing this $5,000 to charity?

Question

Quizplus · Accepted Answer

Molly and Justin will receive a tax deduction of $5,000 for their contribution to the charity, which will bring their total itemized deductions to $20,000. Since they are in the 28% marginal tax bracket, their tax savings will be 28% of $5,000, which is $1,400. Therefore, the correct answer is C.

Molly and Justin Are Considering Contributing $5,000 to Their Favorite,tax