For calendar year 2020, Jon and Betty Hansen (ages 49 and 50) file a joint return reflecting total income (NOT AGI) of $130,000 before the following potential deductions. They incur the following expenditures:

Medical expenses net of reimbursements	$12,000
Personal casualty loss (not covered by insurance) before $100 and AGI floors, Federally declared disaster area	10,000
Interest on home mortgage, balance of mortgage < $750,000	8,000
Interest on credit cards	1,000
Student loan interest	2,600
Property taxes on home	6,000
State income tax	5,000
State sales tax	3,000
Charitable contributions	14,000
Gambling losses incurred (gambling winnings reported $5,000)	5,500
Bettys contribution to her Health Savings Account	1,500
Roth IRA contribution	4,000

a. Show the calculation of AGI starting with the total income shown above of $130,000. List and label each deduction FOR AGI that you are using to compute AGI.

b. Show the calculation of the amount of itemized deductions the Hansens may claim. Be sure to label each!

c. Show the calculation of the Hansens taxable income for 2020.