The charitable donations reduce the amount of tax liability of a taxpayer as they can be claimed as a deduction by the taxpayer in his/her tax return.
Option A is the correct answer.
What are taxes?
Taxes are the obligations imposed on the income of the taxpayer. It is determined as per rates allowed by the IRS based on the filing status of a taxpayer.
The charitable donations are the cash or property gifted to the specified charitable organizations as allowed by the IRS. American taxpayers can claim the deductions on charitable donations up to the allowed limit as revised by IRS from year to year. This deduction would result in the minimization of the tax liability of a taxpayer to some extent.
Therefore, the tax liability is reduced by a deduction claimed for charitable donations by the taxpayer.
Learn more about the charitable deductions in the provided link:
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