Paul is 66 years old and Tina is 62 years old. In 2020, they file a joint return. They support their 22-year-old son, Jed, who is a full-time student. He earns $4,000.00 per year as a waiter at a restaurant.

Wages............................................................... $ 170,000.00

Interest from savings.......................................... $12,000.00

Interest on NYS qualified bonds........................... $7,000.00

Inheritance from Tinas Aunt Lucy....................... $6,000.00

Child support from Tinas ex-husband Eric........ $10,000.00

Prize from the contest at church.................................. $1,000.00

Paul and Tina own a house in Whitestone. The costs associated with the house were as follows:

Mortgage interest $7,000.00

(Please note: The amount of the indebtedness is under $750,000.00.)

Real estate taxes $8,000.00

They paid hospital bills of $7,000.00 and doctors bills of $6,000.00. Their medical insurance company reimbursed them in the amount of $3,000.00 for the doctors bills. They had prescriptions in the amount of $500.00 and a yearly vitamin expense of $200.00.

Their charitable contributions included:

$2,000.00 paid to St. Marys Church

$ 500.00 paid to Mr. and Mrs. Elm (neighbors) whose house was damaged in a flood

1. What is Paul and Tinas gross income?

2. What is Pauls and Tinas adjusted gross income?

3. What is Paul and Tinas standard deduction without regard to their itemized deductions?

4. What is Paul and Tinas net itemized deduction?

5. How much of the charitable donations are deductible?

6. What is Paul and Tinas taxable income?

7. What is Paul and Tinas tax liability?