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Elle and Emmett are a married couple. They have two children, aged 1 4 and 1 1 . Elle is a successful lawyer employed by

Elle and Emmett are a married couple. They have two children, aged 14 and 11.
Elle is a successful lawyer employed by a law firm, and her annual salary is $250,000. The law firm provides all of its employees with free medical and dental insurance coverage. The cost of the medical and dental insurance policies is $16,000 per year. The law firm offers its employees with 401(k) retirement plans, and Elle chooses to contribute $15,000 to her retirement plan this year. The law firm matches Elle's contributions dollar-for-dollar. Elle's federal tax withholding was $45,000 for the current year. Elle, along with other associates reaching 10 years of service with the firm, was given a plaque worth $200 as well as a $20,000 cash bonus.
Emmett suffered an injury at work last year. As such, for the first four months of the year, Emmett collected worker's compensation in the amount of $8,000. Not wishing to return to his job, Emmett started a business partnership with his friend once he was fully recovered. The partnership had $50,000 in revenue and $35,000 in expenses this year. Emmet is a 50% partner in the partnership, and the partnership distributed $5,000 of cash to Emmett this year.
The oldest child is from Elle's first marriage. Elle's ex still pays child support in the amount of $12,000 per year, but this is the only payment made between the two former spouses under the terms of the divorce decree. The divorce was finalized in 2017.
The couple received interest income of $200 from a savings account, $100 from a US Treasury bond, and $400 from a bond issued the state government. Also during the year, Emmett won $5,000 on the blackjack table during a trip to the casino.
The couple purchased 50 shares of Tesla stock for $120 per share. At the end of the year, the stock was trading at $190 per share. The couple still holds all 50 shares at the end of the year.
Deductions for AGI, which include the deduction for self-employment tax, total $4,500. The total other tax liability for 2023, which is related to self-employment tax, is $1,148. Itemized deductions (including the cost of the blackjack bets made by Emmett at the casino) total $34,000 for the current year. Recall that the standard deduction for married filing jointly taxpayers in 2023 is $27,700. Elle and Emmett are not eligible for any tax credits this year.
Calculate the following: 2023 amounts of gross income, adjusted gross income, taxable income, tax liability, and tax due/refund for the current year. You should also list out separately all items of exclusion and deferral from gross income .You must use the individual income tax formula format.

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