Cyclops and Storm Marvel got married 10 years ago and have a 5-year-old son Magneto.Storm's daughter from a previous relationship, Mystique also lives with them.Mystique is 22 years old, unemployed and currently a full time student at Thanos University.In 2019, Cyclops worked as a computer programmer and analyst earning a salary of $287,600, and Storm worked part-time as a receptionist for a law firm earning a salary of $49,000.Cyclops also does some Web design work on the side and reported revenues of $32,500 and associated expenses of $9,750.Storm runs a craft business from their home.Her craft business consists of making craft items for sale at craft shows that are held periodically at various locations.Storm spends considerable time and effort on her craft business and it has been consistently profitable over the years.Storm also had $7,900 of gambling losses from a girl's weekend in Asgard City.The Marvels received a $500 refund of their state income taxes.The Marvels have always itemized their deductions and their itemized deductions were well over the standard deduction amount last year (2018).

The Marvels reported the following additional information during the year (2019):

State income taxes of $4,950 paid. Federal tax withholding of $28,000.

Alimony payments to Cyclops's former wife $12,000 (divorced in 2014).

Child support payments for Cyclops's child with his former wife $11,100.

$12,200 of real property taxes.

$15,500 interest on their home mortgage (acquisition debt of $600,000)

$5,000 interest on a $90,000 home-equity loan.They used the loan to pay for family vacation and new car.

$4,350 interest on loans to pay Mystique's tuition

$32,550 cash charitable contributions to qualified charities.

Donation of used furniture to Guardians of the Galaxy.The furniture had a fair market value of $900 and cost $3,000

Automobile licenses (based on value)$410

State sales tax paid$3,150

Interest on Daredevil credit card$2,980

Penalty for early withdrawal of certificate of deposit$920

Cost of Storm's craft supplies$14,270

Postage for mailing crafts$1,245

Travel and lodging for craft shows$3,430

Storm's craft sales$45,050

Interest from certificate of deposit$4,650

Interest from Treasury bond funds$927

Interest from municipal bond funds$3,920

Storm's gambling winnings$4,900

Determine the amounts listed below (including any self-employment tax, if applicable - ignore AMT) for Cyclops and Storm for the year.

Gross Income

77550

FOR AGI deductions

AGI

FROM AGI deductions

Standard Deduction

Taxable Income

Tax Liability

Prepayments

Credits

Amount Due or Refund

Show work

ITEM

TREATMENT