Tim and Monica Nelson are married, file a joint return, and are your newest tax clients. They provide you with the following information relating to their 2015 tax return:

1.Tim works as a pediatrician for the county hospital. The W-2 form he received from the hospital shows wages of $150,000 and state income tax withheld of $8,500.

2 Monica spends much of her time volunteering, but also works as a substitute teacher for the local schools. During the year, she spent 900 hours volunteering. When she doesn't volunteer, she earns $8.00 per hour working as a substitute.The W-2 form she received from the school district shows total wages of $3,888 and state income tax withheld of $85.

3.On April 13,the couple paid $250 in state taxes with their 2014 state income tax return. The Nelson's state and local sales taxes in 2015 were $5,500.

4.On December 18,the Nelsons donated a small building to the Boy Scouts of America. They purchased the building three years ago for $80,000.A professional appraiser determined the fair market value of the home was $96,000 on December 12.

5.Tim and Monica both received corrective eye surgery, at total cost of $3,000.They also paid $1,900 in health insurance premiums.

6.On June 1,the couple bought a car for $30,000,paying $18,000 down and borrowing $12,000.They paid $750 total interest on the loan in 2015.

7.On June 10,the Nelsons took out a home equity loan of $20,000 to expand their home.They paid a total of $850 interest with their monthly payments on the loan.

8.The Nelsons paid a total of $2,300 interest on their original home loan.

9.They sold stock in Cabinets,Inc for $5,200,which they purchased for $7,900 in March of the current year. They sild stock in the Outdoor Corporation for $12,500, which they purchased several years ago for $8,600.

10.Tim incurred the following expenses related to his profession,none of which were reimbursed by his employer: Item. Amount Subscriptions to $400 medical journals

American Medical Association 250 (AMA)annual membership fee

11 During the year, the couple paid their former tax advisor $700 to prepare their prior year tax return.

12.The Nelsons do not have children, and they do not provide significant financial support to any family members.

Required :Compute the Nelson's taxable income for 2015.