Required: Use the information below to complete the taxpayers taxable income and tax. Make assumptions regarding any information not given.

Dr. Ivan Incisor and his wife Irene are married and file a joint return for 2018. Ivan is age 48 and his wife Irene is 39. They live at 1234 Main Street, Modesto, CA 95350.

The Incisors have three children. Seth is 15 years old, Sara is 18 years old, and Shawn is 3 years old.

The Incisors lived in California the entire year. In 2017, the Incisors filed a form 1040 and filed as MFJ.

The Incisors all had health insurance provided by Ivans employer for the entire year.

Ivan and Irene have savings account interest income of $1,000 from Bank of America.

Ivan and Irene have City of Modesto Bond interest of $300.

Dr. Incisor is a dentist and his form W-2 from Bitedown Dental Group is as follows:

Wages 110,000

Federal withholding 11,000

Social Security withholding 6,500

Medicare withholding 1,540

State (CA) withholding 6,800

Irene works at a dental lab Teeth are Us and her W-2 is as follows:

Wages 45,000

Federal withholding 4,500

Social Security withholding 2,790

Medicare withholding 650

State (CA) withholding 2,500

Ivan and Irene have the following expenses:

Medical and dental expenses 2,000

Prescription eyeglasses 500

Mortgage interest (Wells Fargo Bank) 2,500

Credit card interest 800

Contributions to Catholic Church 10,000

Noncash contributions to Salvation Army 350

Property tax on home 2,000

Auto insurance 700

Auto loan interest 450

State tax due and paid on 2017 return 1,000 paid April 2018

Sara started her first year of college at State University in September of 2018. Ivan and Irene paid 7,000 for her tuition and 800 for books. Sara also received a 1,000 scholarship, which was entirely used for tuition. Determine the best alternative educational tax benefit.

Compute the following:

Total includable gross income:

AGI:

Itemized Deductions:

Which should they choose (itemized or standard):

Taxable income:

Tax:

Credits:

Tax Due/Refund: