Problem: Nathan engaged in the following transactions during 2017. Determine Nathan's gross income, FOR AGI deductions, adjusted gross income, FROM AGI deductions, taxable income, tax liability and his tax due/refund. You should include the Child Tax Credit, if applicable, in your calculations. MAKE SURE TO SHOW & EXPLAIN YOUR WORK, INCLUDING CALCULATIONS Nathan, who is married and 66 years old, worked as an employee and received a salary of $80,000. From his salary, Nathan spent $3,000 to purchase health insurance and long-term disability insurance through his employer's cafeteria plan Nathan had $8,000 in federal income tax withheld from his salary. Nathan also had $5,000 of state income tax withheld. a. b. Nathan received $20,000 in Social Security retirement benefits. c. Nathan received $10,000 in payments from his health insurance to cover medical expenses for himself. He had an additional $2,000 of unreimbursed medical expenses d. Nathan and his wife Karen operate a vegetable stand on weekends to sell vegetables she grows in her garden (vou can assume this is a hobbv). She earned gross income from the hobby of $5,000. Her expenses from the hobby include $2,000 of ordinary and necessary expenses. During the year Nathan contributed $2,000 to his church, $3,000 to a United States non-profit with a tax-exempt designation from the IRS, and gave $1,000 to various political campaigns. e. f. Nathan's total mortgage interest expense on his principal residence was $10,000 He also paid $800 in interest from a car loan, and $600 in interest on credit cards. Nathan's real estate taxes were $2,000 and his personal property taxes (car) were $250. Nathan also paid $2,000 in state sales tax g. Nathan and Karen raise their two grandchildren in their home. Neither parent is involved in raising the children. They are ages 6 and 8. Nathan provides all of the support for the household. h. Nathan contributed $1,000 to a 529 college savings plan for each of his two grandchildren. Problem: Nathan engaged in the following transactions during 2017. Determine Nathan's gross income, FOR AGI deductions, adjusted gross income, FROM AGI deductions, taxable income, tax liability and his tax due/refund. You should include the Child Tax Credit, if applicable, in your calculations. MAKE SURE TO SHOW & EXPLAIN YOUR WORK, INCLUDING CALCULATIONS Nathan, who is married and 66 years old, worked as an employee and received a salary of $80,000. From his salary, Nathan spent $3,000 to purchase health insurance and long-term disability insurance through his employer's cafeteria plan Nathan had $8,000 in federal income tax withheld from his salary. Nathan also had $5,000 of state income tax withheld. a. b. Nathan received $20,000 in Social Security retirement benefits. c. Nathan received $10,000 in payments from his health insurance to cover medical expenses for himself. He had an additional $2,000 of unreimbursed medical expenses d. Nathan and his wife Karen operate a vegetable stand on weekends to sell vegetables she grows in her garden (vou can assume this is a hobbv). She earned gross income from the hobby of $5,000. Her expenses from the hobby include $2,000 of ordinary and necessary expenses. During the year Nathan contributed $2,000 to his church, $3,000 to a United States non-profit with a tax-exempt designation from the IRS, and gave $1,000 to various political campaigns. e. f. Nathan's total mortgage interest expense on his principal residence was $10,000 He also paid $800 in interest from a car loan, and $600 in interest on credit cards. Nathan's real estate taxes were $2,000 and his personal property taxes (car) were $250. Nathan also paid $2,000 in state sales tax g. Nathan and Karen raise their two grandchildren in their home. Neither parent is involved in raising the children. They are ages 6 and 8. Nathan provides all of the support for the household. h. Nathan contributed $1,000 to a 529 college savings plan for each of his two grandchildren