Lee's 2017 taxable income is $88,000 before considering charitable contributions.Lee is a single individual.She makes a donation of $10,000 to the American Heart Association in December 2017.By how much did Lee's marginal tax rate decline simply because of the donation?

Question

Quizplus · Accepted Answer

Charitable contributions can reduce taxable income, but they do not directly affect the marginal tax rate. The marginal tax rate is determined by the tax brackets, and a donation would reduce taxable income, potentially lowering the tax bracket, but not necessarily the marginal rate itself.

Lee's 2017 Taxable Income Is $88,000 Before Considering Charitable Contributions