Harvey and Betty Duran, both age 37, are married with one dependent child. Determine their taxable income from the following information for 2015, and their tax liability. Both the ABC and XYZ partnerships are passive activities. Assume dividends are taxed as ordinary income.

Havery's salary $45,000; Betty's salary $62,000; Dividends received from domestic corporations (nonqualifies) $11,000; Interest $7,000; Itemized dedcutuions $6,920; Net loss from ABC Partnership ($14,200); Net loss from XYZ ($6,000); Harvey's business income $7,700; Harvey's business dedcuitions (before home office expenses) $22,000; Harveyr's home office expenses $10,500; Net loss on rental property ($31,000); Federal Income tax withheld $9,600.