In the old days it was commonly known as FICA. That’s social security. Currently 7.65% for both employee and employer. 6.2% for OASDI and 1.45 for Medicare.
Which is my point with this one. The employee kicks in 6.2% (7.65% including Medicare Hospital Insurance) and the employer kicks in another 7.65%. The employer does not cover both. The illegal kicks in nothing as does the employer of the illegal.
Standard deduction is $11,400. Exemption for joe, mrs. joe, and the two little joes total $14,600. bringing taxable income down to $26,000. 2 child care credits of 41,000 each brings fed tax down to $1,069.
Are you sure you can take the child care credit when the wife is not working? Otherwise we will have to factor in her wage which up to now has not been included. We have also not considered children and the cost to the system of Jose Illegal’s kids (which would get educated in the US school system at the cost of over $8000 per kid per year) and not mentioning the likeliness that any health issues with the Jose Illegal’s children will be handled by Medicaid. Child care and deductions for children are out unless we consider costs to the system of children on both sides.
