During 2021, John and Shelia had the following transactions:

Salary $110,000

Interest income on City of Denver bond 1,000

Life insurance proceeds paid on the death of Johns

uncle (He was the designated beneficiary under the

policy.)

30,000

Inheritance from Johns uncle 25,000

Capital losses 3,500

They also incurred the following expenses during the year:

Medical expenses (before the AGI limitation) $13,000

State and local income taxes 5,200

State sales tax 2,300

Real estate taxes 7,000

Interest paid on qualified residence mortgage

(acquisition indebtedness) of $300,000

5,000

Automobile loan interest 800

Credit card interest 900

Charitable contributions (cash) 15,000

Unreimbursed business expenses (Shelia) 300

John and Shelias employers withheld $11,500 of federal income taxes from their paychecks

during the year. John and Shelia have one qualifying child, and the child meets the eligibility

requirements for the child tax credit of $3,000. John and Shelia file a joint tax return.

Determine John and Shelias total itemized deductions.

Determine John and Shelias tax refund or taxes due.