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 $842. Joe and Jessie have summarized the income and expenses they expect to report this year as follows: Income:

Joes salary $ 130,200

Jessies craft sales 18,510

Interest from certificate of deposit 1,760

Interest from Treasury bond funds 738

Interest from municipal bond funds 942

Expenditures:

Federal income tax withheld from Joes wages $ 13,700

State income tax withheld from Joes wages 6,620

Social Security tax withheld from Joes wages 7,526

Real estate taxes on residence 6,420

Automobile licenses (based on weight) 332

State sales tax paid 1,260

Home mortgage interest 17,100

Interest on Masterdebt credit card 2,520

Medical expenses (unreimbursed) 1,800

Joes employee expenses (unreimbursed) 2,620

Cost of Jessies craft supplies 5,470

Postage for mailing crafts 156

Travel and lodging for craft shows 2,340

Self-employment tax on Jessies craft income 1,684

College tuition paid for Lizzie 6,000

Interest on loans to pay Lizzies tuition 3,420

Lizzies room and board at college 12,840

Cash contributions to the Red Cross 580

What is Joe and Jessie's AIG and Joe and Jessies Taxable income?