Question

If jack was in a 25% tax bracket and received a $1,000 tax deduction, by how much would his taxes be reduced?

Answer 1

The answer is that the taxes would be reduced by the following procedure;

(Tax deduction) * (Tax rate) = Your Answer

Applying this formula;

$1000 x 25% = (?)

$1000 x 25/100 = $250

So the answer is that his taxes would be reduced by “$250”.

Hope that is helpful :)