Question

In 2017, Yule is 66 and single. If he has itemized deductions of $7,300, making an early, extra charitable contribution of $1,000 to his favorite charity before year-end would not provide any tax benefit to him, so he should claim the standard deduction alternative.

a. $64,000.
b. $67,000.
c. $102,000.
d. $104,000.
e. $62,000.

Answer 1

Yule should itemize his deductions instead of claiming the standard deduction alternative.

Step-by-step explanation:

Based on the information provided, Yule is single and has itemized deductions of $7,300 in 2017. In order for making an early, extra charitable contribution of $1,000 to his favorite charity before year-end to provide a tax benefit, it would need to exceed the standard deduction alternative. The standard deduction in 2017 for a single individual was $6,350. Since Yule's itemized deductions ($7,300) exceed the standard deduction ($6,350), it would be more advantageous for him to itemize his deductions instead of claiming the standard deduction alternative. Therefore, the correct answer is not provided in the options given.