Ms. C paid $500 of union dues and $619 for small tools used on the job. In each of the following cases, compute her after-tax cost of these employment-related expenses.
a. Ms. C’s employer paid her a $1,119 reimbursement.
b. Ms. C received no reimbursement. Her AGI is $16,450, she doesn’t itemize deductions, and her marginal tax rate is 10 percent.
c. Ms. C received no reimbursement. Her AGI is $70,150, she itemizes deductions, and her marginal tax rate is 28 percent.
d. Ms. C received no reimbursement. Her AGI is $25,300, she itemizes deductions, and her marginal tax rate is 15 percent.