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Steve(age 40) andEdie(age 39)Bradyare married.Steveworks as a retailmanager andEdieis a self-employedarchitectbut does not maintain a home office.She does NOT qualify for the Qualified BusinessIncome (QBI)

Steve(age 40) andEdie(age 39)Bradyare married.Steveworks as a retailmanager andEdieis a self-employedarchitectbut does not maintain a home office.She does NOT qualify for the Qualified BusinessIncome (QBI) deduction.Their2019tax and other informationare as follows:

Salary -Steve

70,000

Federal withholding on salary

10,000

State withholding on salary

4,000

Interest income onmunicipalbonds:

State of Connecticut

1,000

Savings account interest

1,500

Dividends fromRGR, Inc. (all are non-qualified)

2,500

Value of employer provided medical insurance

3,000

Inheritance fromSteve'sfather's estate

9,000

Interest paid on personal car loan

1,800

Interest paid on personal loan

1,100

Child supportpaid toSteve'sex-wife

10,000

Alimonypaid toSteve'sex-wife-divorced in 2010

8,000

Qualified Out of Pocket Medical Expenses

3,700

Donations to church

Real Estate taxes on primary residence

2,200

6,000

Mortgage interest on primary residence (<$1M)

4,000

Edie's business revenues

58,000

Edie'sbusiness expenses

25,000

Required:Using the tax formula format, determine thefollowing for theBrady's2019tax year(show all calculations):

a.All Income$___________

b.Exclusions (if any)$___________

c.Gross income (includingEdie'sSE income)$___________

d.Deductions For AGI$___________

e.Adjusted gross income$___________

f.Itemized deduction or standard deduction amount$___________

g.Deduction for exemptions$___________

h.Taxable income$___________

i.Income tax liability$___________

j.Self-employment tax liability$___________

k.Net tax dueor refund (show calculation)$___________

Remember:This is for the 2019tax year.You must use appropriate 2019amounts for standard deduction, exemptions, and tax calculations.

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