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Elizabeth currently makes $45,000 per year and is in a 25% tax bracket- If she contributes $2,400 to her 401(k) plan at work, by how much will this lower her taxable income?

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The basic methods of tax planning are: reducing your overall income, increasing your number of tax deductions throughout the year, and taking advantage of certain tax credits.
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Elizabeth currently makes $45,000 per year and is in a 25% tax bracket- If she contributes $2,400 to her 401(k) plan at work, by how much will this lower her taxable income?






 
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