Question

c. Debbie and Jan are both in the 28% tax bracket. Since the interest is deductible, how much would Debbie and Jan each save in taxes? (Round your answers to the nearest cent.)

Answer 1

Step-by-step explanation:

Let's assume Debbie paid $1700 in interest, while Jan paid $9000.

Debbie Saves = $1700* 0.28

Jan Saves = $9000 * 0.28

Debbie Saves $476 in taxes

Jan Saves $2520 in taxes