3. Aharon and Patricia plan to file jointly and they currently project a taxable income of $142,250. They are in the middle of the 22% tax bracket. They donate a lot of their money to charity so they itemize their deductions, and this year they are thinking of donating $2000 to a new charitable organization with 501c3 status. a. How much will the donation lower the amount of taxes they have to pay? b. Considering that their taxes will be reduced, how much will the donation cost them out of pocket? c. This year Patricia gave birth to a child, so they qualify for the $2000 child tax credit. How much will this save them on their taxes?
3. Aharon and Patricia plan to file jointly and they currently project a taxable income of $142,250. They are in the middle of the 22% tax bracket. They donate a lot of their money to charity so they itemize their deductions, and this year they are thinking of donating $2000 to a new charitable organization with 501c3 status. a. How much will the donation lower the amount of taxes they have to pay? b. Considering that their taxes will be reduced, how much will the donation cost them out of pocket? c. This year Patricia gave birth to a child, so they qualify for the $2000 child tax credit. How much will this save them on their taxes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3. Aharon and Patricia plan to file jointly and they currently project a taxable income of $142,250. They are in the middle of the 22% tax bracket. They donate a lot of their money to charity so they itemize their deductions, and this year they are thinking of donating $2000 to a new charitable organization with 501c3 status.
a. How much will the donation lower the amount of taxes they have to pay?
b. Considering that their taxes will be reduced, how much will the donation cost them out of pocket?
c. This year Patricia gave birth to a child, so they qualify for the $2000 child tax credit. How much will this save them on their taxes?
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