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Patrick and Amanda Thompson, married filing jointly (MFJ) taxpayers, have Year 2income from several sources. Tax documents for their Year 2income are provided, along with the MFJ regular and preferential tax rate schedules. Patrick and Amanda are not eligible for the Section 199A qualified business income (QBI) deduction. They have no other sources of income or adjustments to income in Year 2 and do not itemize deductions. The Year 2 standard deduction for married filing jointly taxpayers is $27,700.

Using the tax documents and individual tax rate schedules provided in the exhibit, calculate the amount of Patrick and Amanda's Year 2 federal taxable income and tax liability. Enter the amount of taxable income, long-term capital gain (LTCG) preferential income tax, regular income tax, and net investment income (NII) tax in the table below. Enter all amounts as positive values, using whole numbers. If the amount is zero, enter a zero (0).

A

B

1

Year 2 taxable income

2

Year 2 tax liability:

3

Long-term capital gain (LTCG) preferential tax

4

Regular income tax

5

Net investment income (NII) tax

6

Total Year 2 tax liability

$0