Discussion Case 1Holly and Zachary Neal, from Dublin, Virginia, are preparing to file their 2020 income taxes. Their children are grown; however, Hollys mother, Martha, has moved in with them. As Holly is now caring for her mother, she is no longer working. Martha is dependent on their income for support except for her $536 monthly Social Security benefit.Zachary works for a software company and earns enough to keep their heads above water; however, he had to discontinue participation in his retirement plan so they could pay the bills. Holly is taking this opportunity to work toward her masters degree. They know they will file jointly but need your help preparing their federal tax return. They have gathered all of the appropriate records, as follows: USING INFO ABOVE and in pic ANSWER THESE QUESTIONS: Which items listed on page 129 comprise Gross income for Holly & Zachary Neal as defined in Step 1 on page 108 and Figure 4.3 on page 112 and lines 7-21? What is the total amount? Which items listed on page 129 comprise Adjustments to Gross Income as defined in Step 2 on page 1 and Figure 4.3 on page 112 What is the total amount? What is the Neals Adjusted Gross Income? What tax advantages are available for Hollys education expenses? Please refer to the Ch 4 Textbook Assignment Hints in the course documents section of Blackboard. Would the Neals benefit from itemizing their deductions as defined in step 3 on pages 109-110 or should they take the standard deduction on p 111? What is Marthas Gross Taxable Income for the year? Please refer to the Ch 4 Textbook Assignment Hints in the course documents section of Blackboard.

\begin{tabular}{|l|l|} \hline 1099-DIV, Capital Gains, short-term & $900 \\ \hline Zachary's W-2, Wage and Tax Statement & $54,500 \\ \hline Gambling winnings & $1,500 \\ \hline Inheritance & $35,000 \\ \hline Holly's and Zachary's traditional IRA contributions & $5,000 \\ \hline Martha's unreimbursed medical expenses & $5,100 \\ \hline Holly's and Zachary's unreimbursed medical expenses & $1,700 \\ \hline Martha's total living expenses, excluding medical & $13,000 \\ \hline State taxes withheld and owed & $2,280 \\ \hline Mortgage interest expense & $6,000 \\ \hline Holly's student loan interest payments & $590 \\ \hline Holly's education expense & $5,450 \\ \hline \end{tabular}