Buffy and Biff are both employed. They have two dependent children ages 9 and 10 and they pay $7,200 for child care while they work. In 2018, their combined salary and wage income is $560,000. They each put $4,000 into their traditional IRAs (these IRAs are their only retirement plans). Their itemized deductions are $28,000. What is their net tax liability after all allowable credits if they file jointly and the child tax credit begins to phase out at $400,000?

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The Answer of Buffy and Biff are both employed. They have two dependent children ages 9 and 10 and they pay $7,200 for child care while they work. In 2018, their combined salary and wage income is $560,000. They each put $4,000 into their traditional IRAs (these IRAs are their only retirement plans). Their itemized deductions are $28,000. What is their net tax liability after all allowable credits if they file jointly and the child tax credit begins to phase out at $400,000?

Buffy and Biff Are Both Employed