Gary, who is single

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions
Section: Chapter Questions
Problem 3BCRQ
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Question
Gary, who is single, has adjusted gross income of $ 105,000 and
itemized deductions of $15,000. He is considering making a charitable
contribution of $5,300 and he is in the 24% tax bracket. Gary could also
spend $5,300 on a postsecondary education course that qualifies for
the Lifetime Learning Credit. Which is the best tax choice to reduce his
overall liability?
Make a charitable contribution
Spend on a postsecondary education
course
Best Tax Choice
Reduction in tax liability
$
LA
$
#
Transcribed Image Text:Gary, who is single, has adjusted gross income of $ 105,000 and itemized deductions of $15,000. He is considering making a charitable contribution of $5,300 and he is in the 24% tax bracket. Gary could also spend $5,300 on a postsecondary education course that qualifies for the Lifetime Learning Credit. Which is the best tax choice to reduce his overall liability? Make a charitable contribution Spend on a postsecondary education course Best Tax Choice Reduction in tax liability $ LA $ #
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