This is the discussion: 1. Explain when it is more appropriate to use itemized deductions rather...

Transcribed Image Text:

This is the discussion: 1. Explain when it is more appropriate to use itemized deductions rather than standard deduction? (LO 3) 2. Explain how a tax credit differs from an itemized deduction? (LO 3,4) 3. Using the tax brackets provided in modules, calculate how much tax a single person with $45,000 in taxable income would pay on $800 in interest earned from a bank. Give the tax on $800 only and use the $45,000 only to find the single person tax brackets/rates. If your answer is above $800 or even half of that, then you are doing something wrong. Please show your work. This is the discussion: 1. Explain when it is more appropriate to use itemized deductions rather than standard deduction? (LO 3) 2. Explain how a tax credit differs from an itemized deduction? (LO 3,4) 3. Using the tax brackets provided in modules, calculate how much tax a single person with $45,000 in taxable income would pay on $800 in interest earned from a bank. Give the tax on $800 only and use the $45,000 only to find the single person tax brackets/rates. If your answer is above $800 or even half of that, then you are doing something wrong. Please show your work.