I:1-45 Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During 2022, the partnership reported the total items below (100%) on its Form 1065:

Ordinary income $180,000 Qualified dividends 10,000 Long-term capital loss (12,000)

Long-term capital gain 28,000 Charitable contributions 4,000 Cash distributions to partners 150,000 Howard and his wife Dawn, who file a joint return, also had the following income and deductions from sources not connected with the partnership:

Income Dawn’s salary $40,000 Qualified dividends 3,000 Deductions Mortgage interest 12,000 Real estate taxes 5,800 Charitable contributions 3,000 Howard and Dawn have two children. During 2022, Dawn had $4,500 in federal income taxes withheld from her salary, and Howard made four estimated tax payments of $2,500 each ($10,000 total). Compute Howard and Dawn’s Federal income tax liability for 2022, and determine whether they have a balance due or a tax refund.

Ignore the child tax credits, the self-employment taxes, and the qualified business income deduction.