Tina Koelling owns and manages the unincorporated Christmas Inn. She and her husband, Melvin, file a joint return. Their tax situation for 20X2 is as follows:

A. Income Income from the Christmas Inn $ 100,000 Interest income 1,000 Dividend income 2,000 Melvin’s salary 75,000 B. Adjustments to Income Self-employed SEP investment $ 10,000 C. Exemptions Four (two adults, two children) at $3,200 each D. Itemized Deductions (Schedule A)
Medical $ 5,000 Property taxes 4,500 State income taxes 4,000 Home mortgage interest 6,000 Charitable contributions 8,000 E. Tax Rate Federal income taxes use rates provided in the chapter with 15% for dividend income.
Self-employment tax rate—15.3% on the first $90,000 of earned income and 2.9% on earned income over $90,000.
Note: Social security taxes were properly withheld from Melvin’s paychecks. Self-employment taxes need to be calculated for Tina.
F, Tax Payments Melvin’s employer withheld $10,000 of federal income tax during 20X2. Tina paid estimated federal taxes of $40,000 during 20X2.
Required:
Calculate the amount of federal taxes due or to be refunded to the Koellings for 20X2.
Note: Follow Schedule A (Exhibit 20-4) to determine the deductibility of the Koellings’ itemized deductions. (Round to the nearest $1.)