Mel and Turn are married and file jointly for 2020. They carned $125,000 in total salaries together for the year working for an architecture and construction firm. They moved across the country when Tara was offered a new job opportunity within the company this year, incurring $7,000 in moving expenses. The moving expenses were not reimbursed by their employer. As part of the move, Mel and Tara had to sell their house this year. They had purchased the home in 2014 and after making some improvements to the home its adjusted tux basis at the time of sale was $32,000 They sold it for $560,000. They also paid $1,700 in interest on loans Meltook out to pay for his tuition and foes as an undergraduate architecture major. After the move, Mel had some health issues which required the couple to pay $15,000 in medical expenses (part for health insurance premiums and part deductibles and other out-of-pocket expenses for hospital cate).

Mel and Tara' AGI for 2020 is:

a. 5400

b. 5690

c. 9900

d. none of the answer

Individuals Schedule X-Single If taxable income But not is over: The tax is: over: $ 0 $ 9,875 10% of taxable income $ 9,875 $ 40,125 $987.50 plus 12% of the excess over $9.875 $ 40,125 $ 85,525 $4,617.50 plus 22% of the excess over $40,125 $ 85,525 $163,300 $14,605.50 plus 24% of the excess over $85.525 $163,300 $207,350 $33.271.50 plus 32% of the excess over $163,300 $207,350 $518,400 $47,367.50 plus 35% of the excess over $207,350 $518,400 $156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income But not over: The tax is: is over: $0 $ 19,750 10% of taxable income $ 19.750 $ 80.250 $ 80,250 $1.975 plus 12% of the excess over $19,750 $171,050 $9.235 plus 22% of the excess over $80.250 $326,600 $29,211 plus 24% of the excess over $171,050 $171.050 $326,600 $414,700 $66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94,735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household But not over: The tax is: $ 14,100 10% of taxable income $ 53,700 $1.410 plus 12% of the excess over $14,100 $85.500 $6.162 plus 22% of the excess over $53,700 $163,300 $13,158 plus 24% of the excess over $85.500 $207,350 $31.830 plus 32% of the excess over $163.300 $518,400 $45.926 plus 35% of the excess over $207,350 $154,793.50 plus 37% of the excess over $518,400 Schedule Y-2-Married Filing Separately But not over: The tax is: $ 9,875 10% of taxable income $ 40,125 $987.50 plus 12% of the excess over $9,875 $85.525 $4,617.50 plus 22% of the excess over $40,125 $163,300 $14,605.50 plus 24% of the excess over $85.525 $207,350 $33,271.50 plus 32% of the excess over $163,300 $311,025 $47.367.50 plus 35% of the excess over $207,350 $83.653.75 plus 37% of the excess over $311.025 If taxable income is over: $ 0 $ 14,100 $ 53,700 $ 85,500 $163,300 $207,350 $518,400 If taxable income is over: $ 0 $ 9,875 $ 40,125 $ 85,525 $163,300 $207,350 $311,025