Question: There are two distinct situations: Situation A Situation B Status, No children Single Single Wage Income 60,000 200,000 Medical Cost paid 4,100 4.200 State Income

  1. There are two distinct situations:
Situation ASituation B
Status, No childrenSingleSingle

Wage Income

60,000200,000
Medical Cost paid4,1004.200
State Income tax paid2,5808,300
Property taxes paid07,700
Mortgage interest011,900
Charitable Contributions9402,140


a. What is the 2021 tax owed for the following taxpayer for each situation?

b. For each situation, how much did the taxpayer save in taxes due to making the charitable contribution?

c. For each situation, what is the tax rate based on?

Taxable income (tax owed over tax able income)

Marginal rate (marginal rate)

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