00:01
Okay, so i see that you need help with this, and it says most people make charitable contributions to help people who are disadvantaged in some way or to support causes in which they believe.
00:10
However, they are also able to take advantage of laws that allow them to reduce their federal and state income tax liabilities because of their contributions.
00:20
Taxpayers who file their federal income tax returns using form 1040 can deduct their charitable contributions on schedule a.
00:30
Government leaders have written tax laws in this way to encourage charitable giving.
00:35
It makes sense for people to take advantage of these laws when they make charitable contributions.
00:40
So it wants you to calculate the tax benefit that could be realized by each of the following individuals.
00:46
Brian pays a combined federal and state income taxes at a marginal rate of 31%.
00:51
He donated 500 to his church.
00:53
By how much could his tax liability be reduced? so that's 500 times 0 .31 and that is $155.
01:06
Mandy pays a combined federal and state income tax at a marginal rate of 35%.
01:11
She donated her used car that had a value of $3 ,000 to a charity.
01:18
By how much could her tax liability be reduced? so that is $3 ,000 times $0 .3 .3 .3 .000.
01:27
And that's $1 ,050...