Tony and Liz Montey both work for XYZ Corporation where Tony earns $43,000 and Liz earns $45,000. XYZ Corporation does offer a retirement plan for its employees. Tony and Liz have three-year old twin daughters named Trisha and Tasha. The following is information related to their taxes for the current tax year:

 

If Tony and Liz owe $3,296 in taxes on their taxable income what is their final tax liability after taking the credits for which they qualify?

• $0 
• $2,521 
• $4,521 
• $6,521

Transcribed Image Text:

Gross income Tony s Traditional IRA contribution Liz s Traditional IRA contribution Total itemized deductions Child Credit per child Standard deduction Marginal tax rate $88,000 $2,000 $2,000 $26,400 $2,000 $24,400 12 percent Gross income Tony s Traditional IRA contribution Liz s Traditional IRA contribution Total itemized deductions Child Credit per child Standard deduction Marginal tax rate $88,000 $2,000 $2,000 $26,400 $2,000 $24,400 12 percent

Answer rating: 100% (QA)

option 2 Tax liabilitychild credit for tw... View the full answer