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Michele Barbour is considering an additional charitable contribution of $2,650 to a tax-deductible charity, bringing her total itemized deductions to $18,500. If Michelle is in a 28 percent tax bracket, how much will this $2,650 contribution reduce her taxes

Respuesta :

Answer:

$ 742

Explanation:

Given data:

Charitable contribution = $ 2,650

Total itemized deductions = $ 18,500

Tax bracket Michelle belongs to = 28%

now,

the amount in dollars this $ 2,650 contribution will reduce in taxes will be calculated as:

Amount reduced in taxes = amount of tax deduction × tax bracket

on substituting the respective values, we have

Amount reduced in taxes = $ 2,650 × 28%

or

Amount reduced in taxes = $ 2,650 × 0.28 = $ 742

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