Judy Hays wants to give $3,200 to the building fund at her local church.Assuming Judy can itemize her deductions,how much will this contribution save her on her federal income taxes if she is in the 28 percent marginal tax bracket?

Question

Quizplus · Accepted Answer

To calculate Judy's tax savings, we need to multiply her contribution by her marginal tax rate. 
$3,200 x 0.28 = $896 
Therefore, Judy's contribution will save her $896 on her federal income taxes. The answer is B).

Judy Hays Wants to Give $3,200 to the Building Fund