Dwight and Angela are married. Angela works at a paper company and Dwight has a sole proprietorship. They provide you with the following information for the taxable year $2023$ and asks for your help with their taxes. They are not filing for bankruptcy.

Taxable wage income: $$125,000$

Life insurance proceeds from death of wife: $$20,000$

Credit card loan forgiven: $$10,000$

Gift from friend: $$1,000$

Interest from bank account: $$500$

Interest from city bond: $$8,000$

Business information:

Income from sales: $$100,000$

Accounting expenses: $$3,000$

Supplies: $$10,000$

Penalties $$2,000$

Legal expenses: $$5,000$

Further, $$20,500$ was withheld in taxes from wage income and he paid an additional

$$2,000$ in estimated taxes. Their deductions for AGI are $$30,000$ and the standard

deduction is $$27,700.$

Calculate the following amounts for this couple using the tax brackets and tables at

the end of the test where necessary:

a$)$ Calculate the following amounts for this couple using the tax brackets and tables

at the end of the test where necessary: Gross Income, Adjusted Gross Income,

taxable income, tax liability, and tax due $($refund$).$ Make sure to clearly label

your answers.

All income $=246500$

$-$exclusions of $29,000($ no idea where this number comes from$)$

$=$gross income $217500$

$-$deductions for agi $30000$

$=$agi $187500$

$-$standardized $27700$

$=$taxable income $159800$

$*$tax rate

$=$tax liability $159800-$no idea

$-$credits of $22500$

$=$tax due $3271$

I understand how to find everything but the exclusions and how the tax liability was calculated any guidance would be appreciated!