Sam and Josh are married and have two dependent children, ages 3 and 5. (The children qualify as their dependents.) In January, Sam took a new job in Lubbock as senior vice-president for a local bank where he earned taxable wages of $265.000. Josh is self-employed and sells insurance from home and reported net business income of $60,000 for 2018.Josh paid $3,500 for his medical insurance premiums.There is no employer-sponsored plan available for Josh.His self-employment tax totaled $8,500. The taxpayers received interest income of $10,000 from a savings account; however they did incur an early withdrawal penalty of $1,000. They also received $500 of interest from a municipal bond. The taxpayers were unable to sell their home in Denver, so they converted the home to a rental property.They received $24,000 in gross rent and incurred $18,000 in deductible rental expenses during 2019. Sam received $15,000 as a gift from his grandmother. Josh paid $10,000 in alimony to a former spouse and $24,000 in child support.(Josh's children from his first marriage are claimed as dependents on their mother's tax return.The kids from his first marriage are different than those in the opening sentence.Josh has four total children, but only two qualify as his dependents.)The divorce was finalized in 2008. The taxpayers sold their boat (personal use) that they had owned for three years at a loss of ($8,000). Josh and Sam paid the following out-of-pocket expenses during the year: Medical expenses (unreimbursed) paid = $30,000 (Use 10% reduction rate for 2019) Taxes paid = $11,800 Interest paid = $8,300 Charitable donations paid = $14.000 Child care (daycare) cost$13,000 Qualified business expense deduction = $12,000 Based on the above information, calculate the couple's AGI, taxable income, tax liability, and any tax due or refund for 2019. Ignore AMT and net investment tax. Please show all calculations. Answer should be given in the individual income tax formula format. Sam and Josh are married and have two dependent children, ages 3 and 5. (The children qualify as their dependents.) In January, Sam took a new job in Lubbock as senior vice-president for a local bank where he earned taxable wages of $265.000. Josh is self-employed and sells insurance from home and reported net business income of $60,000 for 2018.Josh paid $3,500 for his medical insurance premiums.There is no employer-sponsored plan available for Josh.His self-employment tax totaled $8,500. The taxpayers received interest income of $10,000 from a savings account; however they did incur an early withdrawal penalty of $1,000. They also received $500 of interest from a municipal bond. The taxpayers were unable to sell their home in Denver, so they converted the home to a rental property.They received $24,000 in gross rent and incurred $18,000 in deductible rental expenses during 2019. Sam received $15,000 as a gift from his grandmother. Josh paid $10,000 in alimony to a former spouse and $24,000 in child support.(Josh's children from his first marriage are claimed as dependents on their mother's tax return.The kids from his first marriage are different than those in the opening sentence.Josh has four total children, but only two qualify as his dependents.)The divorce was finalized in 2008. The taxpayers sold their boat (personal use) that they had owned for three years at a loss of ($8,000). Josh and Sam paid the following out-of-pocket expenses during the year: Medical expenses (unreimbursed) paid = $30,000 (Use 10% reduction rate for 2019) Taxes paid = $11,800 Interest paid = $8,300 Charitable donations paid = $14.000 Child care (daycare) cost$13,000 Qualified business expense deduction = $12,000 Based on the above information, calculate the couple's AGI, taxable income, tax liability, and any tax due or refund for 2019. Ignore AMT and net investment tax. Please show all calculations. Answer should be given in the individual income tax formula format