Problem 3-50 (LO. 9) Each year, Tom and Cindy Bates (married filing jointly) normally have...
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Problem 3-50 (LO. 9) Each year, Tom and Cindy Bates (married filing jointly) normally have itemized deductions of $24,000 (which includes an annual $4,000 pledge payment to their church). On the advice of a friend, they do the following: In early January 2023, they pay their pledge for 2022; during 2023, they pay their pledge for 2023; and in late December 2023, they prepay their pledge for 2024. a. What are the Bateses trying to accomplish? To have their itemized deductions exceed the standard deduction b. What would the Bates' total itemized deductions be if all three church pledge payments were made in 2023 ? Assume that the itemized deductions of $24,000 already included one year of the church pledge payments. x What will be the Bates' tax savings if their marginal tax bracket is 24% for all three years? (Assume that the standard deduction amounts for 2023 and 2024 are the same.) By concentrating their charitable contributions, their tax savings becomes \$ X. c. Complete a letter to Tom and Cindy Bates (8212 Bridle Court, Reston, VA 20194) summarizing your analysis
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