Sal is a 27-year-old single taxpayer in the 28 percent marginal tax bracket.Assuming Sal's standard deduction is $5,800 and she has itemized deductions totaling $6,500,Sal should take the ____ for the additional tax savings of ____.

Question

Quizplus · Accepted Answer

Since Sal's itemized deductions ($6,500) exceed her standard deduction ($5,800), she should take her itemized deductions. The additional tax savings would be equal to the difference between her itemized deductions and the standard deduction, which is $700 ($6,500 - $5,800). Therefore, Sal should take the itemized deduction for the additional tax savings of $196.

Sal Is a 27-Year-Old Single Taxpayer in the 28 Percent