Joe and Jessie are married and have one dependent child, Lizzie. Joe works in manufacturing and Jesse runs a craft business from their home. Joe and Jessie own their home and pay interest on their home loan. (balance 220,000). They also have a personal loan to pay for Lizzies college expenses (balance 35,000). Joe and Jessie are not blind or over age 65, and are MFJ. Based on the information and following estimates, deterime their AGI and taxable income for the year, and Schedule A of 1040. Assume the employer portion of the self employment tax on jessie's income is $808.00

Summary of Income and Expenditures:

Income:

Joes Salary $119,100, Jessies craft sales $18,400. Interest on CD $1,650. Interest on Treasury bonds $727

Expenditures: Federal income tax w/h from Joe's wages $13,700. Sate income tax w/h from joes wages $6,400. Social security tax w/h from Joes wages $7,482. Real estate taxes on residence $6,200. Automobile licenses $310. State sales tax paid $1,150. Home mortgage interest interest $14,000. Medical expenses (unreimbursed) $1,690. Joe's employees expenses (unreimbursed) $2,400. Cost of Jessies craft supplies $4,260. Postage for mailing crafts $145. Travel and lodging for craft shows $2,230. Self employment tax on jessies craft income $1,615. College tuition paid for Lizzie $5,780. Interest on loans to pay Lizzies tuition $3,200. Lizzies room and board $12,620. Cash contribution to the Red Cross $525.