Amy and Albert Anderson are under age 65 and file a joint return. They have the following tax information for 2019:

Mr. Anderson is a lawyer in practice that operates as a partnership. His ordinary income for the year = $270,000 and is qualifying business income from a service business. Assume earnings from self-employment = $240,000. He made a $30,000 contribution to a qualifying Keogh self-employed retirement plan.

Mrs. Anderson earned $240,000 as an employee. Withholding from her paycheck was $30,000 federal and $20,000 state.

The Andersons have the following investment income: $10,000 interest from federal bonds, $5,000 from corporate bonds, $12,000 qualifying dividends, and $6,000 long-term capital gain distribution from a mutual fund.

The Andersons have an investment in a farming business in another state that operates as S Corporation. Their K-1 shows a $(7,000) loss.

Mrs. Anderson received a $100,000 cash inheritance when her aunt died.

The Andersons paid $35,000 on a first mortgage of $473,000 on their personal residence. The mortgage was incurred to buy their home.

They paid $12,000 property taxes on their home.

Mrs. Anderson had extensive dental work during the year. The cost of $30,000 was only partially reimbursed by their insurance, so they had to pay $14,000.

Other:

• They have a capital loss carryforward from 2018 = $11,000.
• They made federal estimated payments of $50,000 and state estimated payments of $15,000.
• Cash contributions to qualifying organizations = $29,000.

The IRS estimate of their state and local sales tax = $8,000.

Calculate their AGI, taxable income, tax liability, and refund or amount due.