1. Reba and Charlie, who are married filing jointly, have three children (ages 5, 9 and 18) who are dependents. They have W-2 income of $90,000. They have $13,500 taxes withheld. Reba and Charlie have the following expenses for the year:

   Interest on a home equity loan (loan issued for $100,000, used for secondary education)	$2,500
   Interest on first mortgage (original loan balance $450,000)	$12,000
   Property taxes on personal residence	$8,000
   State income tax	$8,000
   State sales tax	$4,500

   What is Reba and Charlies tax refund or liability after all deductions and credits?

   	a.	$7,390 tax due.
   	b.	$290 refund due.
   	c.	$12,710 refund due.
   	d.	$13,210 refund due.