Sally and Jim are married taxpayers filing jointly. They have the following items for the year:

Salary $ 325,000

Federal income tax withheld 25000

State income tax withheld 12,000

Gambling Income 17,000

Cash prize from a radio contest 6,000

Cash inheritance from Jims Grandmother 150,000

Interest paid on qualified home mortgage

(Acquisition debt = $650,000) (15,000)

Cash charitable contributions (5,000)

Property taxes (non-business use) (5,500)

Gambling Losses (30,000)

Loris tuition at the University of Michigan (5,500)

Interest paid on Jims student loans (3,000)

Interest income on municipal bonds 5,000

Cash contribution to the Republican party (2,500)

Sally and Jim have two dependent children, Lisa and Lori. Sally and Jim also claims Sally's mom, Elizabeth, as a dependent. Lori is a sophomore at the University of Michigan. Sally and Jim paid $5,500 on Loris tuition this year.

Jim purchased stock in Dell Corp. for $18,000 on February 1, this year. He sold the stock on August 31, this year for $13,000.

During the year Lisa had a surgery. Total charges for the hospital and doctor visits paid by Jim and Sally in 2014 was $75,000. Their insurance company only reimbursed them for $20,000 of the costs, and they do not expect to receive any more from their insurance company.

(15 points, 1 point for each blank) Calculate Sally and Jims AGI for this year. Fill in the blanks below. Answers can be 0.

Consider how each item impacts the AGI. If an item increases the AGI by 100, then write 100. If an item decreases the AGI by 100, then write -100. If an item does not change the AGI, then write 0.

Item	Amount
Salary	325,000
Federal income tax withheld	b
State income tax withheld	c
Gambling Income/loss	d
Cash prize from a radio contest	e
Cash inheritance	f
Home mortgage interest	g
Cash charitable contributions	h
Property taxes	i
Loris tuition	j
Interest paid on Jims student loans	k
Capital gains/losses	l
Interest income on municipal bonds	m
Cash contribution to the Republican party	n
AGI	p