Ron and Mary are both 67 years of age. David still works and earned $35,000 last year. David received and paid the following items as well:

Advanced commissions for services to be performed in the future $2,500 Payments by his employer under a qualified plan for dependent care $2,000 Sick pay due to illness paid by insurance company (premiums paid for by his employer) $2,000 Cash allowance to pay for meals during working hours 500 Payments by his employer to a qualified pension plan $1,400 Group-term life insurance paid by his employer on insurance coverage Of $40,000 200 David and Becky also have the following items of income: Interest income $3,000 Social security benefits $36,400 Determine taxable income.

Keep in mind that some of them are taxable and others not.