Question

Alexis is single and in the 22% tax bracket. For the current year, assume she claims a standard deduction of $12,000. In addition, she is able to take a $1,000 education tax credit. What is the total tax benefit derived by Alexis as a result of claiming these items on her tax return

Answer 1

$3,640

Step-by-step explanation:

The computation of the total tax benefit derived is shown below:

But before that we have to find out the claimed tax benefit

= Standard Deduction × Tax Rate

= $12,000 × 22%

= $2,640

And, the education tax credit is $1,000

So, the total tax benefit derived is

= $2,640 + $1,000

= $3,640

Therefore the tax benefit derived is $3,640