Calculate the tax liability. Show work where possible.

part 1: Cadence and Clark Carter file married joint. Information for 2020

Salary $200,000 State of New York Interest $10,000 Treasury bill interest $20,000 Gift from Cadences mother $40,000 Sole Proprietorship income $50,000 ( Landscaping business) Clark inherited $100,000 from his great grandfather Long term Capital Gain $60,000 Unemployment income $20,000 Workmens compensation $30,000 Legal Settlement for a broken ankle $100,000 Cadence found a bracelet worth $20,000 on the beach. Clarks sister Cai, repaid a $20,000 loan from 2011. Cadence won $10,000 at bingo. Contribution to Health savings account $ 1,000 Self-employment tax $4,000 Alimony paid $10,000. The divorce was finalized in 2006. Medical Expenses $40,000 Real estate taxes $20,000 State income tax $25,00 Mortgage interest $60,000, the $3,000,000 mortgage was signed in 2010. Donation to American Kidney Society $40,000

Part 2:

Calculate tax credits:

Cadence and Clark have 4-year-old triplets Caia, Coral, and Chrysanthemum. The Clarks paid The Locust Day School $15,000 to watch their children while they worked. The lower-earning spouse earned $70,000 in 2020.