Joe and Jessie are married and have one dependent child, Lizzie. Lizzie is currently in college at State University. Joe works as a design engineer for a manufacturing firm while Jessie runs a craft business from their home. Jessies 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. Joe and Jessie own a home and pay interest on their home loan (balance of $220,000) and a personal loan to pay for Lizzies college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over age 65, and they plan to file as married-joint. Assume that the employer portion of the self-employment tax on Jessies income is $856. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income: Joes salary $ 131,600 Jessies craft sales 18,650 Interest from certificate of deposit 1,900 Interest from Treasury bond funds 766 Interest from municipal bond funds 970 Expenditures: Federal income tax withheld from Joes wages $ 13,700 State income tax withheld from Joes wages 6,900 Social Security tax withheld from Joes wages 7,582 Real estate taxes on residence 6,700 Automobile licenses (based on weight) 360 State sales tax paid 1,400 Home mortgage interest 18,500 Interest on Masterdebt credit card 2,800 Medical expenses (unreimbursed) 1,940 Joes employee expenses (unreimbursed) 2,900 Cost of Jessies craft supplies 7,010 Postage for mailing crafts 170 Travel and lodging for craft shows 2,480 Self-employment tax on Jessies craft income 1,712 College tuition paid for Lizzie 6,280 Interest on loans to pay Lizzies tuition 3,700 Lizzies room and board at college 13,120 Cash contributions to the Red Cross 650

Determine Joe and Jessies AGI and taxable income for the year. (Round your intermediate calculations to the nearest whole dollar amount.)

Complete page 1 of Form 1040 (through taxable income, line 15), Schedule 1, and Schedule A.

(Round your intermediate computations to the nearest whole dollar amount. Input all the values as positive numbers. Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. Use 2021 tax rules regardless of year on form.)

Joes address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Joe: 111-11-1111 Jessie: 123-45-6789 Lizzie: 567-89-0123