Joe and Jessie are married and have a dependent child, Lizzie. Lizzie is 23, and she currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie is self-employed and runs a craft business from their home. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at various locations. Jessie spends considerable time and effort on her craft business and it has been consistently profitable over the years. Neither Joe nor Jessie is blind or over age 65, and they plan to file jointly.

Determine Joe and Jessie's Gross Income, AGI, taxable income, total tax liability, and final income tax due/refund for the current year, including a computation of the calculations needed on Sch C, Sch D and Sch A. Joe and Jessie have provided the following information:

Joes Salary - $135,000

Jessies craft sales - $18,400

Interest from certificate of deposit - $1650

Interest from US Treasury bond - $730

interest from city of Mobile bond -$920

Gain from selling Apple stock (frshort-term) - $1800

Gambling winnings - $1500

Expenditures:

Cost of Goods Sold for Jessie's craft business -$4260

Postage for mailing crafts - $145

Travel and lodging for craft shows - $2230

Advertising for Jessie's craft business - $335

Self-employment tax on Jessie' craft income - $1620

Loss from selling IBM stock (long-term) - $7000

Student loan interest paid - $3200

Federal income tax withheld from Joe's wages - $20,000

State income tax withheld from Joe's wages - $6400

Social security tax withheld from Joe's wages - $7482

Real estate tax on residence - $6200

State sales tax paid - $1150

Home mortgage interest - $14,000

Interest on Mastercard credit card - $2300

Hospital stay (unreimbursed) - $1690

Over-the-counter drugs - $450

Gambling losses - $2100

Cash charitable contribution to the Red Cross - $5250