[Question 1-8] Jay's job is going great, and this past year he decided to work parttime, so that he could go to school full-time for his master's degree. Jay went to a business school, and tuition and fees were $25,000 for the year. He paid for his tuition and fees using a combination of savings, current income, scholarship, employer provided tuition assistance, and student loans. It is the end of the year and Jay is filing his tax return. His total income and benefits are as follows: - Wages: $40,000 (as reported on his W2) - Employer provided tuition assistance: $5,000 - Scholarship: $6,000 - Student loan proceeds: $8,000 - Gift from his grandmother: $1,000 In addition to tuition, Jay had the following expenditures: - Student loan interest: $1,500 (as reported to Jay by his lender on Form 1098-E) - Books: $1,100 - Rent: $14,000 It is now time for Jay to complete his tax return. Jay is 28 years old and is in a relationship with Sandra, planning to get married next year. Calculate Jay's Tax Liability. $3,186$3,066