Solve the Problem $15 \%$ Marginal Rate Affects Income Starting At $\$ 8925$

question 32

Multiple Choice

Solve the problem. Refer to the table if necessary. 2013 Marginal Tax Rates, Standard Deductions, and Exemptlons**


- Each higher marginal rate begins where the prior one leaves off. For example, for a single person, the $15 \%$ marginal rate affects income starting at $\$ 8925$ , which is where the $10 \%$ rate leaves off, and continuing up to $\$ 36,250$ .
" This table ignores the effects of (i) exemption and deduction phase-outs that apply to high-income taxpayers and (ii) the alternative minimum tax (AMT) that affects many middle- and high-income taxpayers.
-Your deductible expenditures $4146 for contributions to charity and $635 for state income taxes. Your filing status entitles you to a standard deduction of $6100. Should you itemize your
Deductions rather than claiming the standard deduction? If so, what is the difference?

• A)No, you are better off with the standard deduction.
• B)Yes, $4781
• C)Yes, $2589
• D)Yes, $1319

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