John (age 66) and Mary (age 59) Smith are married and file a joint federal tax return. They have 2 dependent children in college ages 20 & 22. John and Mary have the following information for 2019:

Income:

Johns Salary $ 120,000

Marys Salary $ 80,000

Interest Income from taxable bonds $ 8,000

Proceeds from a life insurance policy $ 50,000

(Johns aunt passed away)

Deductions:

Alimony paid to Marys ex-spouse $ 25,000

(pre 1/1/19 divorce)

Itemized deductions

Charitable donations $ 5,000

NJ State Income Tax $ 11,000

Real Estate Taxes $ 9,000

John had $ 19,500 in federal withholding tax withheld from his pay, while Mary had 12,000 withheld.

A Calculate the Smiths 2019 Gross Income.

B - Calculate the Smiths 2019 AGI.

C Calculate the Smiths 2019 Taxable Income

D Calculate the Smiths refund or balance due