Based upon the following facts, determine Johnson’s taxable income for 2021, federal income tax, AND tax refund/due after calculation of their tax and all credits:

Kate Johnson, social security number 062-74-4106 who is 46 years old, and her husband, David Johnson, social security number 099-76-1111 who is 72 years old, are filing a joint return for 2021. They live in a brownstone at 301 Park Avenue, New York, NY 10003. The following relevant information is provided regarding their tax transactions during 2021:

Kate and David live with their children whom they support fully: Rachel, a high-school student who turned 18 on December 21, 2021, social security number 221-12-1212, Sally, who turned 17 on January 1, 2021, social security number 090-12-121, and Tami, who turned five on April 10, 2021.

Kate earned $300,000 from her law firm, which she operates as a single-member LLC. She reports her business as a sole proprietorship (a flow-through organization eligible for QBI deduction). Wages paid by the law firm amount to $40,000; the law firm has no significant property.

David earned $89,800 as an employee of The Ship.

During 2021, Daivd’s employer deducted $14,000 of Federal income taxes, $6,000 of New York State taxes, and $3,000 of New York City taxes. During 2021, Kate paid the following estimated taxes: $26,000 of Federal income taxes, $7,000 of New York State taxes, and $5,000 of New York City taxes.

David and Kate paid the following additional expenses during 2021:

Interest on their $1,300,000 mortgage on their brownstone - $39,000. (The mortgage was used to purchase the brownstone and the interest rate is 3%.)

Property taxes on their New York home- $3,500.

Charitable contributions to various charities for which they had receipts and canceled checks- $12,000.

Donation of Kate’s clothes, which had cost her $2,000, and which they valued at $800.

Routine uninsured medical expenses include:

Uninsured portion of doctors fees $500

Prescription medicines $600

Over-the-counter medicines $150

Cabs to doctors $200

Braces for Rachel $12,000

In addition, David suffered from acute heart and hip problems and was unable to climb the stairs to reach his second-floor bedroom. His physician advised him to add a first-floor bedroom to the brownstone house. The cost of constructing the room was $52,000. The Johnsons paid an appraiser $500 and she determined that the increase in the value of the residence as a result of the room addition was $32,000.

In addition, the Johnsons paid the contractor $5,500 to construct an entrance ramp to his home and $8,500 to widen the hallways to accommodate his wheelchair.