During all of 2020, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2020. Neither is blind, and both are under age 65. They reported the following tax-related information for the year. (Use the tax rate schedules)

Salary income	$125,000
Medical expenses	4,000
Real estate taxes	4,200
Alimony paid by Mr. Clay (divorced in 2015)	12,000
State income tax withheld	1,800
Federal income tax withheld	5,000
Qualified home mortgage interest (acquisition debt of $300,000)	15,000
Charitable contributions	9,000

Compute the following amounts for their 2020 tax return:

1. Adjusted gross income (AGI)
2. Deductions FROM AGI
3. Tax liability after credits
4. Tax refund