Question

Decide whether you should itemize your deductions or take the standard deduction in the foliowing case. State how much the bettor option will save you. Assurfe the standard deduction is 512,550. Your fling status is single. Your deductible expenditures are $5900 for interest on a home morlgage, $2700 for centributions to charity, and $2705 for state and local zaxes. You should for a savings of $ in taxable income

Answer 1

The student should take the standard deduction as it is greater than their total deductible expenditures, resulting in no additional savings in taxable income.

Step-by-step explanation:

To decide whether to itemize deductions or take the standard deduction, we need to compare the total deductible expenditures to the standard deduction. In this case, the deductible expenditures are $5,900 for mortgage interest, $2,700 for charity contributions, and $2,705 for state and local taxes. Adding these amounts gives a total of $11,305.

Since the standard deduction is $12,550, which is higher than the total deductible expenditures, it is more beneficial to take the standard deduction. Itemizing deductions would not result in any additional savings in taxable income.

The savings in taxable income would be $0.