My Personal Finance Concepts - Math Problem Example

The amount of tax saved thus could have been 450 dollars multiplied by 15% according to my tax bracket. (45000*.09=4050 4500-4050=450 450+(450*.15)=517.5)

Could you have reduced taxes on dividend income by moving part of your investments to tax-free municipal bonds If so, how much tax could you have saved If I had moved $5000 of my investments to tax-free municipal bonds I would have saved 450 dollars more. (45000*.09=4050 4500-4050=450)Could you have taken capital losses on any of your investments to offset any capital gains that you reported If so, how much tax could have been saved I could have taken capital losses in size of $3000 and that would have saved me 270 dollars. (47000*.09=4230 4500-4230=270)

Could you have increased the number or size of gifts to charitable organizations If so, how much tax could you have saved Assuming I donated the gifts to charitable organizations in the sum of $4000 I would have saved 360 dollars? (46000*.09=4140 4500-4140=360)

Do you qualify for an IRA, Keough, or 401(k) plan If so, calculate the tax you would save by contributing 6% of your income to an IRA. I qualify for an IRA, so I would save 270 dollars. (50000*.06=3000 50000-3000=47000 47000*.09=4230 4500-4230=270)Add any other strategy that you could have used to minimize your federal tax bill and estimate the amount that would have been saved.

If I invest my money into a non-taxed enterprise (like a municipal museum, in a sum of $2,000) the amount of tax saved would be $180 (50000-2000=48000 48000*.09=4320 4500-4320=180)Add the results of your calculations to determine the total amount of federal income tax that you could have saved last year.