Tim and Sarah Lawrence are married and file a joint return. Tim's Social Security number is 123-45-6789, and Sarah's Social Security number is 111-11-1111. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children, Sean and Debra, ages 12 and 16, respectively. Sean's Social Security number is 123-45-6788, and Debra's Social Security number is 123-45-6787. Tim is a self-employed businessperson (sole proprietor of an unincorporated business), and Sarah is a corporate executive. Tim has the following income and expenses from his business in 2019.

Gross income $325,000

Business expenses 201,000

Records related to Sarah's employment provide the following information.

Salary $145,000

Unreimbursed travel expenses (including $200 of meals) 1,600

Other pertinent information for the tax year includes the following.

Proceeds from sale of stock acquired on July 15, 2019 (cost of $12,000), and sold on August 1, 2019 $ 9,800

Proceeds from sale of stock acquired on September 18, 2018 (cost of $5,000), and sold on October 5, 2019 3,800

Wages paid to full-time domestic worker for housekeeping and child supervision 10,000

Interest income received 7,000

Total itemized deductions (not including any potential deductions above) 27,900

Federal income tax withheld 31,850

Estimated payments of Federal income tax 20,000

Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2019. Show answer using correct tax forms.