Susie and John Clayton have been married for 18 years and have 3 children. The children are under the age of 17. But over the age of 6 and still reside at the house and are fully supported by their parents. The couple received combined salary income of 173,000. They had a loss of $5,000 on the sale of stock they had held for the last 10 years as an investment. They sold their house this year for $250,000. They initially purchased the home three years ago for $200,000 and both have lived in it as their primary residence since the purchase date. The Claytons has $28,900 of itemized deductions and they had $7,460 with held from their paychecks for federal taxes. Susie contributed $5000 to a traditional IRA since she was not covered by an employer plan.

What is their taxable income and tax liability using the table. How much tax will the Claytons have to remit with the filing of their tax return?

The standard deduction amount is 13,859 for single and married filing joint is 27,700.

Please show how you arrive to the answer.

Married Tax Brackets Marginal Rate 10% Income Range Taxes You Pay $0 to $22,000 10% of taxable income 12% $22,001 to $89,450 22% $89,451 to $190,750 24% $190,751 to $364,200 32% $364,201 to $462,500 35% $462,501 to $693,750 37% $693,751 and above $2,200 plus 12% of the income over $20,550 $9,615 plus 22% of the income over $83,550 $30,427 plus 24% of the income over $178,150 $69,294 plus 32% of the income over $340,100 $98,670 plus 35% of the income over $431,900 $174,252 plus 37% of the income over $647,850