Note: This problem is for the 2018 tax year.

Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2016. Alfred and Beulah will file a joint return for 2018. Alfred's Social Security number is 111-11-1109. Beulah's Social Security number is 123-45-6780, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304.

Alfred was divorced from Sarah Old in March 2016. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2018. In addition, in January 2018, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788.

Alfred's salary for 2018 is $150,000. He is an executive working for Cherry, Inc. (Federal I.D. No. 98-7654321). As part of his compensation package, Cherry provides him with group term life insurance equal to twice his annual salary. His employer withheld $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for FICA taxes.

Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $42,000 in 2018. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for FICA taxes.

Alfred and Beulah had interest income of $500. Alfred and Beulah receive a $1,900 refund on their 2017 state income taxes. They itemized deductions on their 2017 Federal income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2018. Their charitable contributions total $2,400 (all to their church). They paid sales taxes of $1,400, for which they maintain the receipts. Both spouses had health insurance for all months of 2018 and do not want to contribute to the Presidential Election Campaign.

Required:

Compute the Olds' net tax payable (or refund due) for 2018. Use Form 1040 and Schedule 1 to complete this tax return.

1 Wages, salaries, tips, etc. Attach Form(s) W-2.... 192,000 2a Tax-eyen Tax-exempt interest b Taxable interest 500 3a 3b 4b Qualified dividends 3a b Ordinary dividends IRAS, pensions, and 4a b Taxable amount annuities Social security benefits 5a b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 2,200 5b 6 194,700 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6......... 179,700 24,000 8 19 10 Standard deduction or itemized deductions (from Schedule A)......... Qualified business income deduction (see instructions).... Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O-.... 10 155,700 11 O 26,133 . 12 a Tax (see inst) 26,133 (check if any from: 1 Form(s) 8814 2 Form 4972 30 b Add any amount from Schedule 2 and check here ................... a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here ....... Subtract line 12 from line 11. If zero or less, enter-O-.. Other taxes. Attach Schedule 4..... 13 14 15 Total tax. Add lines 13 and 14 .......... 16 Federal income tax withheld from Forms W-2 and 1099 10,400 17 Refundable credits: a EIC (see inst.) b Sch 8812 c Form 8863 Add any amount from Schedule 5 Add lines 16 and 17. These are your total payments .............. 18 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid overpaid... .... ...... ....... ....... ....................... 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 1 Wages, salaries, tips, etc. Attach Form(s) W-2.... 192,000 2a Tax-eyen Tax-exempt interest b Taxable interest 500 3a 3b 4b Qualified dividends 3a b Ordinary dividends IRAS, pensions, and 4a b Taxable amount annuities Social security benefits 5a b Taxable amount Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 2,200 5b 6 194,700 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, line 36, from line 6......... 179,700 24,000 8 19 10 Standard deduction or itemized deductions (from Schedule A)......... Qualified business income deduction (see instructions).... Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O-.... 10 155,700 11 O 26,133 . 12 a Tax (see inst) 26,133 (check if any from: 1 Form(s) 8814 2 Form 4972 30 b Add any amount from Schedule 2 and check here ................... a Child tax credit/credit for other dependents b Add any amount from Schedule 3 and check here ....... Subtract line 12 from line 11. If zero or less, enter-O-.. Other taxes. Attach Schedule 4..... 13 14 15 Total tax. Add lines 13 and 14 .......... 16 Federal income tax withheld from Forms W-2 and 1099 10,400 17 Refundable credits: a EIC (see inst.) b Sch 8812 c Form 8863 Add any amount from Schedule 5 Add lines 16 and 17. These are your total payments .............. 18 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid overpaid... .... ...... ....... ....... ....................... 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here