You just won the lottery and want to give some money to a good cause. Because you have enjoyed this class so much, especially the tests, you decide to give $10,000 to HCC to fund student scholarships. HCC is a non-profit educational institution. What impact would that have on your federal income tax liability?
a. none
b. It would reduce the amount of income tax you owe by $10,000.
c. It would reduce your taxable income by $10,000.
d. It depends on your tax bracket.