John and Georgia are a married couple with two dependent sons. Their salaries total $130,000. They have a capital loss of $8,000 and tax-exempt interest income of $1,000. They paid home mortgage interest of $10,000, state income taxes of $4,000, and medical expenses of $3,000, and they made charitable contributions of $5,000. (The tax year is 2018.)

Reference

STANDARD DEDUCTION

Filing Status

Married individuals filing joint returns and surviving spouses $24,000

Heads of households 18,000

Unmarried individuals (other than surviving spouses and heads of households) 12,000

Married individuals filing separate returns 12,000

Additional standard deduction for the aged and the blind

Individual who is married and surviving spouses 1,300

*Individual who is unmarried and not a surviving spouse 1,600

*Taxpayer claimed as dependent on another taxpayer's return: Greater of (1) earned income plus $350 or (2) $1,050.

* These amounts are $2,600 and $3,200, respectively, for a taxpayer who is both aged and blind.

a.

Compute their adjusted gross income.

b.

Compute their total itemized deductions.

c.

Compute their taxable income.