John and Michelle are married and earned salaries this year of $84,000 and $86,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,500 from corporate bonds and $2,000 from long-term capital gains. John's mother died this year and he collected $30,000 from her insurance policy as he was the beneficiary. Michelle received $3,000 in short-term disability for a month off from work due to a back injury. Her employer had paid the premium on her behalf and she had not elected to include the premiums in her income. The couple spent a weekend in Atlantic City in November and came home with gambling winnings of $3,200. John and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, John and Michelle are allowed to claim a $2,000 child tax credit for Matthew. John and Michelle paid $20,000 of expenditures that qualify as itemized deductions and they had a total of $10,500 in federal income taxes withheld from their paychecks during the course of the year.

What is John and Michelle's gross income? What is John and Michelle's adjusted gross income? What is the total amount of John and Michelle's deductions from AGI? What is John and Michelle's taxable income? What is John and Michelle's taxes payable or refund due for the year (use the tax rate schedules 2023)?