Gary Contributes $200 a Month to a Flexible Spending Arrangement

question 33

Multiple Choice

Gary contributes $200 a month to a flexible spending arrangement for health care.If Gary is in the 25 percent marginal tax bracket,which of the following is true?

• A)Gary will save $2,500 in federal income taxes
• B)Gary will save $2,400 in taxes
• C)Gary could write off $2,400 as an itemized deduction
• D)Gary will save $600 in federal income taxes

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