Mary Contrary is a forty-two year old widow whose husband Morty died in 2018. She has two children, Brian 15, and Amelia, 13, who live with her. Amelia was Mary's daughter by a previous marriage. A determination by Mary at year-end was that she provided all of the support for Brian and Amelia.

Mary is employed by ABC Corporation and received $115,000 in wages in 2020.

During the year, Mary received an inheritance from her wealthy Aunt Betty in the amount of $80,000 cash. In addition, Mary was injured during the year and received $5,000 proceeds from a disability insurance policy that she had purchased herself. She also received punitive damages of $20,000 from the drunk driver that hit her car.

Mary sold the principal residence that she and her kids had resided in for the past 6 years. The original cost of the house was $250,000 and she sold the house on 9/15/2020 for $325,000.

Mary owned two investments, a piece of swamp land in New Jersey that she purchased in 2010 for $20,000 that is now worth $18,000, and 10 shares of Apple stock that she purchased on 8/31/2020 for $137 per share and sold on 11/2/2020 for $127 per share, capital loss of $100.

Her employer paid 100% for the health insurance of all of their employees. For 2020, the cost of the premiums for Blue Cross insurance was $5,200.

Mary's wealthy Uncle Dan gave her $15,000 in cash as a gift in 2017. She invested the money in a savings account and earned $200 in interest.

Mary was also involved in a Ponzi scheme where she defrauded and stole $600 from some senior citizens. Mary also won $750 during the football season with her FanDuel fantasy team.

Her only other income was $500 interest from a port of New York State Municipal Bond, $50 in U.S. savings bond interest, and a $1,000 dividend from IBM stock.

She had itemized deductions of $19,300 for 2020 and had federal income tax withheld of $12,000.

Compute Marys lowest federal tax liability and her 2020 federal income taxes payable or refund. Also, list all gross income exclusions.