For the TAX YEAR 2018, Robert and Serena received in social security $36000. In addition to their social security benefits, they had earned income of $66250 and interest income of $50. Their state refund from 2017 was $600. They had a deduction for AGI of $2000.

1. Determine the amount of taxable social security benefits. Use the 1040 worksheet.

2. Determine the Adjusted Gross Income.

3. Determine the standard or itemized deduction amount based on the following info

A. Medical & Dental Expenses $3600

B. State & Local Taxes $7000

C. Real Estate Taxes $3800

D. Personal Property Taxes $900

E. Mortgage Interest $8900

F. Charity Contributions $24000

4. Determine Taxable Income

5. Determine the Income Tax Liability

**Please state how you came to your answers.