A single worker has gross income subject to tax of $40,000. She makes a $5,000 contribution to a special tax-deferred retirement plan offered by her employer. The worker claims one personal exemption for herself and has the following deductible payments: $1,000 in mortgage interest, $1,000 in state income tax, and $500 in property tax. Does it pay the worker to itemize deductions when filing her 2009 tax return? Using the 2009 tax rate schedule shown in Figure 14.1, calculate the worker's tax liability.
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