Tim and Sarah Lawrence are married and file a joint return. They reside at 100 Olive Lane, Covington, LA 70434. They have two dependent children. Sean and Debra, ages 12 and 16, respectively. 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. Gross income Business expenses Records related to Sarah's employment provide the following information. $325,000 201,000 Salary Unreimbursed travel expenses (including $200 of meals) Other pertinent information for the tax year includes the following $145,000 1,600 Proceeds from sale of stock acquired on July 15, 2018 (cost of $12,000), and sold on August 1, 20189,800 Proceeds from sale of stock acquired on September 18, 2017 (cost of $5,000), and sold on October 5, 3,800 2018 Wages paid to full-time domestic worker for housekeeping and child supervision 10,000 7,000 27,900 31,850 20,000 Interest income received Total itemized deductions (not including any potential deductions above) Federal income tax withheld Estimated payments of Federal income tax Compute the net tax payable or refund due for Tim and Sarah Lawrence for 2018