Formula to summarize tax savings from a charitable gift made by a taxpayer who is itemizing:
a) Tax savings = (Donation amount) × (Marginal tax rate)
b) Tax savings = (Donation amount) ÷ (Marginal tax rate)
c) Tax savings = (Donation amount) - (Marginal tax rate)
d) Tax savings = (Donation amount) + (Marginal tax rate)