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Dale (age 29) and Allison (age 27) Smith are married and will file a joint federal income tax return for 2020. The Smiths also filed

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Dale (age 29) and Allison (age 27) Smith are married and will file a joint federal income tax return for 2020. The Smiths also filed a joint return for 2019. Dale and Allison are both employed and had the following wages and withholdings in 2020: State Income Federal Tax Withheld Income Tax Gross Wages Withheld Dale $75,000 $3,750 $16,500 Allison $60,000 $4,000 $17,000 Dale's employer provides him with health insurance coverage as an employee fringe benefit without cost to Dale. The value of the health care coverage provided to him is $10,000. In addition to her wages, Allison earned a bonus of $12,000 in 2020, for which her employer gave her a check on the morning of December 31, 2020. Allison decided to hold the check until January 2, 2021, when she deposited the check into her bank account. Allison also received a $5,000 award from her employer during 2020 for adding the largest number of new clients. Do Homework-ra... P Do Homework - ra... sme ueposited the check mo ner bank account. Alison also received a $5,000 award from her employer during 2020 for adding the largest number of new clients. During 2020, Allison earned $1,000 of interest on a U.S. Treasury bond, and the Smiths earned $500 of interest income from Chase Bank on their joint savings account. The Smiths also received $2,000 of interest from a State of Illinois bond in 2020. The Smiths overpaid their 2019 state income taxes by $1,200, and received their $1,200 state income tax refund in June, 2020. The Smiths' did not itemize their deductions in 2019. In addition to the above amounts, in 2020 they had itemized deductions for interest expense of $12,000 on their $300,000 home mortgage, real estate taxes on their home of $6,000, and cash contributions to various charities totaling $5,000. The Smiths paid $3,000 of interest expense in 2020 on a qualified education loan associated with Allison's 2014 marketing degree from Aurora University. Compute the Smiths' 2020 taxable income. Answer: ious page

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