Louis and Sandy Roman were married with two children, Eddie, age 13, and Nancy, age 20. On July 7, Year 3, Louis died. Nancy is a full-time student at the state university. The Romans own their home and live in Denver. Louis had been disabled since Year 1. Sandy is an insurance adjuster and sings in her church choir.

Sandy and Louis Roman filed a joint income tax return for Year 2.

Assume for the purposes of this TBS that Louis was still alive at the end of Year 3. For the Year 3 tax year, the Roman family had various items of income and expenditures, attached. Determine either the amount of income, or the adjustment to income, that should be included or deducted on the Romans' Form 1040 Individual Income Tax Return, to arrive at adjusted gross income. Insert the appropriate items of income and the appropriate adjustments to income. Round to the nearest dollar.

Excerpt from page 2 of Form 1040

	A	B	C	D
1	1. Wages, salaries, tips, etc.		1	50000
2	2a. Tax-exempt interest		500
3	3a. Qualified dividends
4	4a. IRAs, pensions and annuities		b. Taxable amount
5	5a. Social security benefits		b. Taxable amount
6	6. Additional income and adjustments to income. Attach Schedule 1.
7	7. Adjusted gross income. Combine lines 1through 6.			0.00

Excerpt from Schedule 1 of Form 1040

	A	B
1	Additional Income
2	1-9. Reserved
3	10. Taxable refunds, credits, or offsets of state and local income taxes
4	11. Alimony received
5	12. Business income or (loss)
6	13. Capital gain or (loss)
7	14. Other gains or (losses)
8	15. Reserved
9	16. Reserved
10	17. Rental real estate, royalties, partnerships, S corporations, trusts, etc.
11	18. Farm income or (loss)
12	19. Unemployment compensation
13	20. Reserved
14	21. Other income
15	22. Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6.	0.00
16	Adjustments to Income
17	23. Educator expenses
18	24. Certain business expenses of reservists, performing artists, and fee-basis government officials
19	25. Health savings account deduction
20	26. Moving expenses for members of armed forces
21	27. Deductible part of self-employment tax
22	28. Self-employed SEP, SIMPLE, and qualified plans
23	29. Self-employed health insurance deduction
24	30. Penalty on early withdrawal of savings
25	31. Alimony paid
26	32. IRA deduction
27	33. Student loan interest deduction
28	34. Reserved
29	35. Reserved
30	36. Add lines 23 through 35.	0.00
31	37. Subtract line 36 from line 22. Enter here and on Form 1040, line 6.	0.00