I need help with line 5, Thank you

DANIEL B BUTLER Medical and Dental Expenses 2 Enter amount from Formm Caution. Do not include expenses reimbursed or paid by 1 Medical and dental expenses (see instructions). 0 173,182 V 3 Multiply line 2 by 10% (0.10). But if either you or your spouse was born before January 2, 1952, multiply line 2 by7.5% (0.075) instead . 17,318 V 4 Subtract line 3 from line 1. If line 3 is more than line 1, enter -0-...... . . . .. . . 0 5 State and local (check only one box): Taxes You Paid a Income taxes b General sales 1,800 600 8 Other taxes. List type and amount 0 9 Interest 10 Home mortgage interest and points reported to you on You Paid 4,900 10 11 Home mortgage interest not reported to you on Form Note. 1098. If paid to the person from whom you bought the home, see instructions and show that person's name, identifying no. and address Your mortgage deduction may be limited (see 12 Points not reported to you on Form 1098. See instructions for special rules. . . 12 0701). Selected information from the W-2 Forms provided by the employers is presented below. Dan and Freida use the cash method Line Description Dan Freida 1 Wages, tips, other compensation $74,000 $86,000 11,000 12,400 2,960 3,440 2 Federal income tax withheld 17 State income tax withheld Freida sold a house on December 30, 2016, and will be paid a commission of $3,100 (not included in the $86,000 reported on the W-2) on the January 10, 2017 closing date. Other income (as reported on 1099 Forms) for 2016 consisted of the following: Dividends on CSX stock (qualified) Interest on savings at Second Bank Interest on City of Corbin bonds Interest on First Bank CD $4,200 900 382 The $382 from First Bank was original issue discount. Dan and Freida collected $16,000 on the First Bank CD that matured on September 30, 2016. The CD was purchased on October 1, 2014, for $14,995, and the yield to maturity was 3.3% Dan received a Schedule K-1 from the Falcon Partnership, which showed his distributive share of income as $7,000 (non passive income). In addition to the above information, Dan and Freida's itemized deductions included the following Paid on 2016 Kentucky income tax Personal property tax paid Real estate taxes paid Interest on home mortgage (Corbin S&L) Cash contributions to the Boy Scouts Sales tax from the sales tax table is $1,860. Dan and Freida made Federal estimated tax payments of $8,000. All members of the family had health insurance coverage for all of 2016. Dan and Freida do not wish to contribute to the Presidential Election Campaign. The Kentucky income tax rate is 4%. $700 800 Form -W2 a Employee's sodal sccurity number Vist the IRS website at FAST!accurate, .g.e file ww.. vete No. 1545-0008 ~ 123-45-6789 b Employer number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld 98-7654321 $ 86,000 S 12,400 c Employer's name, address, and ZIP code 3 Social security wages 4 Social security tax withheld Corbin Realty, Inc 899 Central Street Corbin, KY 40701 $ 86,000 $ 5,332 5 Medicare wages and tips 6 Medicare tax withheld $ 86,000 S 1,247 7 Social security tips 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and LastSuff. 11 Nonqualified plans 12a See instructions for box 12 initial Frieda C. Butler 625 Oak Street 13 Statutory Retirement Third-party sick 12b Corbin, KY 40701 pay 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's stateID 16 State wages, tips, 17 State income tax 18 Local wages, tips, 19 Local income 20 Locality etc. etc. 98-7654321 s 86,000 s 3,440 Form W-2 wage and Tax Statement 2016 Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. a Employee's sodal scourity number Safe, accurate FASTI Usee fil the e b Employer n number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld $ 74,000 S 11,000 c Employer's name, address, and ZIP code 3 Social security wages 4 Social security tax withheld W3J),Inc 604 Franklin Street Corbin, KY 40702 $ 74,000 $4,588 5 Medicare wages and tips 6 Medicare tax withheld $ 74,000 $1,073 7 Social security tips 8 Allocated tips d Control number 10 Dependent care benefits e Employee's first name and LastSuff. 11 Nonqualified plans 12a See instructions for box 12 initial Daniel B. Butler 625 Oak Street 13 Statutory Retirement Third-party sick 12b Corbin, KY 40701 pay 14 Other 12c 12d f Employee's address and ZIP code 15 State Employer's stateID 16 State wages, tips, 17 State income tax 18 Local wages, tips, 19 Local income 20 Locality etc. etc. s 74,000 s 2,960 Form W-2 Wage and Tax Statement 2016 Department of the Treasury-Internal Revenue Service Copy B-To Be Filed With Employee's FEDERAL Tax Return. This information is being furnished to the Internal Revenue Service. CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, 1a Total ordinary ZIP or foreign postal code, and telephone no. dividends Dividends and 2016 4,200 CSX 123 Main Street Anytown, CA 1b Qualified Distributions dividends Form 1099-DIV $4,200 2a Total capital gain distr. 2b unrecap. Sec, 1250 gain PAYER's federal identification RECIPIENT'S identification number 2d Collectibles (28%) 2c Section 1202 gain number gain 95-123456789 123-45-6789 Copy B 4 Federal income tax withheld s 0 RECIPIENT'S name For Recipient Freida C. Butler This is important tax information and is being Street address (including apt. no.) 7 Foreign country or U.Surnished to the Internal 625 0ak Street 6 Foreign tax paid Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported City or town, state or province, country, and ZIP or foreign postal code $ 9 Noncash liquidation 8 Cash liquidation distributions Corbin, KY 40701 11 Specified private FATCA filing requirement 10 Exempt-interest dividends acivity bond interest dividends 12 State 13 State Account number (see instructions) 14 State tax withheld identification Form 1099-DIV (keep for your records) www.irs.gov/form1099div Department of the Treasury-Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no Payer's RTN (optional) OMB No. 1545-0112 Interest 2016 1 Interest income Income City of Corbin 444 City Blvd Corbin, KY 40701 Form 1099-INT 2 Early withdrawal penalty PAYER'S federal identification RECIPIENT'S identification number number Copy B 3 Interest on U.S. Savings Bonds and Treas. obligations For Recipient 4 Federal income tax RECIPIENT'S name 5 Investment expenses withheld This is important tax information and is being Daniel and Frieda Butler 6 Foreign tax paid 7 Foreign country orfurnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not beern reported Street address (including apt. no.) U.S. possession 625 0ak Street 8 Tax-exempt interest 9 Specified private activity bond interest City or town, state or province, country, and ZIP or foreign postal code Corbin, KY 40701 $900 10 Market discount 11 Bond premium FATCA filing 12 13 Bond premium on tax-exempt bond 14 Tax-exempt and tax credit bond CUSIP Account number (see instructions) 15 16 State 17 State tax withheld State identification no.S Form 1099-INT (keep for your records) www.irs.gov/Torm 1099int Department of the Treasury-Internal Revenue Service CORRECTED (ir checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. Payer's RTN (optional) OMB No. 1545-0112 Interest 2016 1 Interest income Income First Bank 345 First Street Corbin, KY 40701 382 Form 1099-INT 2 Early withdrawal penalty PAYER'S federal identification RECIPIENT'S identification number Copy B number 3 Interest on U.S. Savings Bonds and Treas. obligations For Recipient 4 Federal income tax Investment expenses This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that RECIPIENT'S name withheld Daniel and Frieda Butler 6 Foreign tax paid 7 Foreign country or U.S. possession Street address (including apt. no.) 625 0ak Street 8 Tax-exempt interest 9 Specified private activity bond interest City or town, state or province, country, and ZIP or foreign postal code Corbin, KY 40701 10 Market discount 11 Bond premium FATCA filing it has not beern reported 12 13 Bond premium on tax-exempt bond 14 Tax-exempt and tax credit bond CUSIP 15 16 State State identification no.S Account number (see instructions) 17 State tax withheld Form 1099-INT (keep for your records) www.irs.gov/Torm 1099int Department of the Treasury-Internal Revenue Service CORRECTED (if checked) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no Payer's RTN (optional) Interest 2016 1 Interest income Income Second Bank 455 Second Street Corbin, KY 40701 1,600 Form 1099-INT 2 Early withdrawal penalty PAYER's federal identification RECIPIENT'S identification number Copy B number 3 Interest on U.S. Savings Bonds and Treas. obligations For Recipient 4 Federal income tax Investment expenses This is important tax information and is being furnished to the Internal RECIPIENT'S name withheld Daniel and Frieda Butler 6 Foreign tax paid 7 Foreign country orRevenue Service. Ir you are required to file a return, a negligence penalty or other sanction may be imposed on you if this income is taxable and the IRS determines that it has not been reported Street address (including apt. no.) U.S. possession 625 0ak Street 8 Tax-exempt 9 Specified private activity bond interest City or town, state or province, country, and ZIP or foreign postal code nterest Corbin, KY 40701 10 Market discount 11 Bond premium FATCA filing 12 13 Bond premium on tax-exempt bond 14 Tax-exempt and tax credit bond CUSIP 15 16 State State identification no.S Account number (see instructions) 17 State tax withheld Form 1099-INT (keep for your records) www.irs.gov/form1099int Department of the Treasury-Internal Revenue Service