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Scenario $1$: Retirement Account Movements

Wages: Michael $($$$78,000),$ Jessica $($$$62,000)$

Interest and Dividend Income: $$1,200$

QBI: None

Itemized Deductions: $$22,000$

Allowable deduction for self$-$employment tax: None

Additional Information:

Michael contributes $$6,000$ to a Traditional IRA $($he$\text{'}$s age $45).$

Jessica takes a $$10,000$ distribution from her Roth IRA $($contributions were $$25,000,$ earnings are $$5,000).$ She's age $62.$

Calculate:

AGI, Taxable Income, Potential Child Tax Credits, Total Tax Liability