Larry and Louise are a married couple with no children. Larry earns a salary of $48,600. Louise has net income from her sole proprietorship of $87,200. She also materially participates in LMN Partnership and JKL, Inc (an S corporation). This year, her share of LMN loss is $12,000, and her share of JKL loss is $35,000. Her basis in LMN is $85,000 and her basis in JKL is $28,000. Larry and Louise have personal interest income of $1,100, and itemized deductions of $21,500. In 2019, their return showed excess business loss of $8,000.

Required:

Compute their 2020 tax liability on a joint return.