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. Jessie's craft business consists of making craft items for sale at craft shows that are held periodically at variaous 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 Lizzie's college expenses (balance of $35,000). Neither Joe nor Jessie is blind or over the age 65, and they plan to file as married joint. Based on their estimates deterine Joe and Jessie's AGI and taxable income for the year. Assume that the employer portion of self employment tax on Jessie's income is $831. Joe and Jessie have summarized the income and expenses they expect to report this year as follows:

Income
Joes Salary	124,100
Jessies Craft Sales	18,400
Interest from certificate of deposit	1,650
Interest from Treasury Bond Funds	716
Interest from Municipal Bond Funds	920

Expenditures
Federal Income Tax withheld from Joe's wages	13,700
State Income tax withheld from Joe's wages	6400
Social Security Tax withheld from Joe's wages	7482
Real Estate Taxes of Residence	6200
Automobile Licenses (based on weight)	310
State sales tax paid	1,150
Home mortage interest	14,000
Interest on credit card	2,300
Medical expense (unreimbursed)	1,690
Joe's employee expenses (unreimbursed)	2,400
Cost of Jessie's craft supplies	4,260
Postage for mailing crafts	145
Travel and lodging for craft shows	2,230
Self-employment tax of Jessie's craft income	1,662
College tutiton paid for Lizzie	5,780
Interest on loans to pay Lizzie's tutiton	3,200
Lizzie's room and board at college	12,620
Cash Contribution to the Red Cross	525