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Bob and Allie Katz are a married couple with three children. Their wages for 2018 totaled $125,400 with an additional $200 in interest income. They
Bob and Allie Katz are a married couple with three children. Their wages for 2018 totaled $125,400 with an additional $200 in interest income. They have calculated their itemized deductions to be $33,700 and also realized a short-term capital gain of $2,600. They sold stock for $13,000 in 2018 which had been purchased in 2015 for $10,000. For the year, Bob and Allie have paid $24,600 in federal taxes. They are also eligible for a tax credit of $2000. Combined, they contributed $10,000 into their Roth IRAs. What is their taxable income?
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