Assume 4 people, 2 kids, one under 17, and 1 in college
401K--30K for 2. ( keep this in mind that in some government job, there is 457 plan for 15K each person, pension contribution is tax-deferred, and no SS.)
Traditional IRA-10K if you get the AGI under 89K
STD deduction--11000
Deduction for 4 person--13000.
So, taxable income=120K-64K=56K
Federal Tax is about 7800.
credit--children--1000; Opportunity credit:2500; work payment: 800; So tax is 3500. (If buying a house credit--get money back from Uncle Sam......)
State--some has no income tax, some are higher....
Plus SS 6.25%, 1.45% medicare
