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:

John’s Salary                                          $ 120,000

Mary’s Salary                                          $   80,000

Interest Income from taxable bonds        $     8,000

Proceeds from a life insurance policy      $   50,000

         (John’s aunt passed away)

Deductions:

Alimony paid to Mary’s 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 Smith’s 2019 Gross Income.

B - Calculate the Smith’s 2019 AGI.

C – Calculate the Smith’s 2019 Taxable Income

D – Calculate the Smith’s refund or balance due