Azul and Desi Garcia both work. Azul is a school counselor, with an annual salary of $55,325. Azul had business expenses that totaled $2125 in adjustments. In 2018, Azul had a surgery that cost $30,000, and Azul had to pay $25,000 out of pocket. Any amount of medical expenses that exceed 7.5% of Azul's AGI can be written off as a deduction. Outside of work, Azul has been taking college courses to further their education. He qualified for the Lifetime Learning tax credit of $2000. Desi works as a psychologist, with an annual salary of $100,062. Desi contributed $3375 to a tax-deferred savings plan (an adjustment). Desi also paid off $7000 in mortgage interest, which she can list as an itemized deduction. Desi also bought an electric vehicle this year, which qualified her for a $7500 Electric Vehicle tax credit. Show Calculations for Separate and Joint Taxes - Standard Deductions for Married-but-Separate 1. Now let's assume Desi and Azul took the standardized deduction. Calculate Desi's taxable income and tax owed assuming she takes the standard deduction. 2. How much does Desi owe after incorporating tax credits? 3. Calculate Azul's taxable income and tax owed assuming he takes the standard deduction. 4. How much tax does Azul owe after incorporating tax credits? 5. How much do Azul and Desi owe combined when filing taxes with standard deductions as married-but-separate? If they plan to file their taxes as married but separate, would you recommend them to take the itemized deduction or the standard deduction