Blake and Leslie Mayer (age 30) are married with one dependent child (age 5)

- Blake's gross salary from his corporate employer is $70,000 and his section 40(1) K contribution was $6,300.

- Leslie's salary from Gui Tech an S Corporation, was $29,400.

- Leslie owns 16% of Gui Tech's outstanding stock. Their pro rata share of Gui Tech's ordinary business income was $13,790, also Leslie's pro rata share of Gui Tech's net loss was $8,100 and they received a $7,000 cash distribution from Gui Tech. The ordinary income from Gui Tech is qualified business income.

- Blake recieved a $15,00 cash gift from his grandmother.

- Leslie won $6,400 in the Maryland state lottery.

- The Mayers received a distribution from their investment in Pawnee Mutual Fund that consists of $712 qualifying dividend and a $3,020 long-term capital gain.

- Blake paid $12,000 alimony to a former spouse under a divorce agreement executed in 2011.

- The Mayers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on personal residence.

- The Mayers paid $7,000 state income tax and $4,200 state and local tax.

- Leslie contributed $1,945 to the First Baptist Church.

Relevant Information to this case:

Standard Deduction is 24,000

Income tax is:

$8,907 + 22% of excess over $77,400

Capital gains and qualified dividends:

MFJ

0 - 77,200 is 0%

77,201 to 479,000 is 15%

Compute the Mayer's 2018 federal tax (including any AMT) on their joint return. Assume the taxable year is 2018.

AGI =

Taxable Income =

Mr. and Mr. Mayer's regular income tax liability (after applicable credits) =

AMT =

Mr. and Mr. Mayer's total tax liability (including AMT) =

I get stuck on AGI, does it go (70-6.3) + 29400 (?)