Each year, Tom and Cindy Bates report itemized deductions of $20,000 (which includes a $4,000 pledge payment to their church). Upon the advice of a friend, they do the following: in early January 2019, they pay their 2018 pledge; during 2019, they pay the 2019 pledge; and in late December 2019, they prepay their 2020 pledge.

a. Explain what the Bateses are trying to accomplish.

b. What will be the tax saving if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2019 and 2020 are the same.)

c. Write a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis.