Prepare Lisa and Matt Davis’ Form 1040 for tax year 2020 based on the facts provided below. Please limit your analysis to the facts provided.

Lisa (birthdate 3/15/1981) and Matt (birthdate 7/2/1982) Davis married on August 1, 2020. Lisa’s SSN is 111-22-3333. Matt’s SSN is 444-55-6666. They live at 1280 your last name Drive, Dallas, TX 75205.

Matt divorced from Dorothy Davis on October 20, 2011. Under the divorce agreement, Matt is required to pay Dorothy alimony of $1,200 per month. Dorothy’s SSN is 777-88-9999. Matt has full custody of Chris Davis, his son, who is 9 years old (SSN 100-11-2222) and lives with Lisa and Matt all year. For purposes of this project, ignore QBI, credits, AMT and other taxes, and passive activity losses.

Matt is a software engineer and his salary for 2020 is $65,000. His employer withheld $6,000 for federal income taxes. There is no state income tax in Texas. Lisa is a lawyer and her salary for 2020 is $80,000.

Her employer withheld $10,000 for federal income taxes.
Lisa and Matt had the following stock transactions for the year:
• Sold 1,000 shares of Home Depot stock on September 2, 2020 for $32,000. Their basis was $21 per share, purchased April 12, 2020.
• Sold 100 shares of UPS stock on October 4, 2020 for $10,000. Their basis was $220 per share, purchased February 3, 2015.
• Sold 500 shares of TJ Maxx stock on October 12, 2020 for $18,000. Their basis was $46 per share, purchased February 5, 2014.

On September 16, 2020, Matt’s grandmother passed away and they inherited $145,000 in cash.
For one week during the year, Lisa and Matt go skiing in Colorado and rent their personal home for $400 a night. They pay for cleaning services before and after the renters leave, totaling $250.
They own a house in Austin that they rent all year to four University of Texas graduate students. The address is 809 Theresa Ave, Austin, TX 78703. They provide documentation of the following:
Rental revenue $36,000
Cleaning services $200
Insurance $3,200
Mortgage interest $14,000
Repairs and maintenance $500
Property taxes $4,200
The Davis’ also had the following for 2020:
• Lisa and Matt both had laser eye surgery during 2020 to correct their vision. Each surgery cost $7,500 and their insurance reimbursed $1,000 for each procedure.
• Their other medical expenses included visits to the doctor and dentist ($500 total), allergy shots ($2,080), nutritional supplements ($300), and prescription medicines ($200).
• Lisa paid interest of $2,100 for student loans she took out for law school. Assume their relevant modified AGI is $145,000 for purposes of determining any potential deduction.
• Earned interest of $2,900 from a high-interest savings account at Frost Bank
• Paid an early withdrawal penalty of $35 to Frost Bank
• Earned interest of $3,000 from Parry Corporation bonds
• Paid $17,000 for a modest wedding and $6,900 to travel to Europe for a short honeymoon.
• Paid mortgage interest of $13,500 on their home in Dallas. The acquisition debt on their homes in Dallas and Austin do not exceed $750,000.
• Paid property taxes of $5,400 on their home in Dallas
• Estimated sales taxes paid is $3,510
• Paid interest expense of $1,400 on their auto loan and $520 in vehicle registration fees, $350 of which was an ad valorem assessment.
• Matt made a contribution of $3,800 to a traditional IRA and Lisa contributed $4,000 to a Roth IRA. Assume Lisa and Matt are not subject to phase out for purposes of determining any potential deduction.
• Matt won $350 playing the lottery. He also had gambling losses of $700.
• Paid $500 in interest on a loan they took out in order to invest in stocks. Their investment income for the year is greater than $500.
• Donated cash to the following charities: $2,000 to Habitat for Humanity, $1,000 to the Red Cross, and $1,000 to Special Olympics.
• Donated $400 to the election campaign of a senator.
• Donated a painting worth $3,000 to the Dallas Museum of Art for their expanded gallery. Matt originally purchased the painting for $2,100 in 2013.

I need the following amounts:

1. AGI

2. Itemized deduction amount

3. Tax due