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Carl and Renee Simpson are 63 and 62 respectively. They file a joint retum. They had income for 2020 as follows: Pension from forrmer employer (Carl) Pension from former employer (Renee) Interest income from savings account Interest income from City of Miami bonds Dividends from Apple stock held for over one year 1,600 Annuity Social Security (Carl) Social Security (Renee) Wages (Carl) Wages (Renee) 16,700 25,950 600 3,200 4,725 18,672 21,000 150,000 202,000 The cost of the annuity was $52,000 and they expect to receive a total of 10 years of payments of $525 a month. They have received 9 payments through 2020. They had the following expenses as well: State income taxes Income tax withheld Property taxes on home Mortgage interest (all is deductible) 22,000 Charitable contributions (cash) Sales tax paid 4.000 80,000 6.500 6,800 1.000 They also provide over half of the total support of eaclh of the following individuals, all of whom still live at home. Their only child. Jennifer, was killed in an automobile accident 10 years ago and they have adopted her 3 children (their grandchildren). 1. Daniel, their son (grandson). age 22 a full-time student, who married on Oct. 1. has no income of his own and did not file a joint return with his wife, Annie, who earned S11.000 during 2020. 2 Mattliew, their son (grandson), age 16, graduated high school in May 2020. He is taking a leap year and will not begin college until 2021 He had total uross ine $525 a month. They have received 9 payments through 2020. They had the following expenses as well: State income taxes Income tax withheld Property taxes on home Mortgage interest (all is deductible) 22,000 Charitable contributions (cash) Sales tax paid 4,000 80,000 6,500 6,800 1,000 They also provide over half of the total support of each of the following individuals, all of whom still live at home. Their only child, Jennifer, was killed in an automobile accident 10 years ago and they have adopted her 3 children (their grandchildren). 1. Daniel, their son (grandson), age 22 a full-time student, who married on Oct. 1, has no income of his own and did not file a joint retum with his wife, Annie, who earned $11,000 during 2020. 2. Matthew, their son (grandson), age 16, graduated high school in May 2020. He is taking a leap year and will not begin college until 2021. He had total gross income of 6.300 in 2020. 3. JOAnn, their oldest child (grandchild), age 27, is a full-time graduate student with gross income of $4.250. Compute Carl and Rene's income tax payable (or refund due). Show all your work. Tax rates for 2020 10% 0-19,750 12% 19.751-80.250 22% 80,251-171,050 24% 171,051-326,600 32% 326,601-414.700 Maximum for this bracket 1975 7260 19976 37332 Dividend Tax Rate: 15% for income $80,001-496,600 Gross Income/ AGI (20 points) Deductions from AGI (15 points) Taxable Income (5 points) Income Tax (5 points) Assume they are not responsible for any Alternative Minimum Tax and they have paid Social Security, Medicare. and state taxes required Ra rate as income Deductions from AGI (15 points) Taxable Income (5 points) Income Tax (5 points) Assume they are not responsible for any Alternative Minimum Tax and they have paid all the Social Security, Medicare, and state taxes required. Remember Dividends are not taxed at same rate as income.: Tax Credits (Remember phase-outs for credits.): (5 points) Withholding: Refund or Tax Payable: (5 points)