You are a newly-hired tax professional with H&R Block. Its April 13, 2021, and the Hoang family has come to you asking for you to do their taxes. Based on the following information: calculate their gross income, AGI, Carolines self-employment tax and Section 199A deduction and taxable income in addition to filling out all necessary tax forms for their tax filing, which is due on April 15, 2021.

Background: Joe and Caroline Hoang are married U.S. citizens and both are 48 years old. They live in Arlington, Va. They have three children Leia, Harrison, and Rey for whom they provide over half of their support (somewhat reluctantly). Leia is 23 and a full time student American University she lives on campus in one of the dorms. She hopes to graduate soon and join the Peace Corp. She earned $4,500 from a summer internship with Amnesty International. Harrison is 19 and applying to colleges after taking a year off between high school and college. He earned $6,200 in part-time work driving for Uber in 2020. He would have earned more if he had his own car. On the other hand, Rey is 14 and in high school. She has a strong entrepreneurial spirit and wants to be a venture capitalist someday. In the meantime, Rey has a thriving neighborhood babysitting and pet sitting business (Reys In-Home Kiddo and Pet Services). In 2020, she had earnings of $6,000 from her business. Disregard necessary alternative minimum tax calculations. Round all calculations to the nearest dollar. Assume Joe had $15,000 of wages withheld from his paychecks and Caroline made quarterly estimated payments amounting to $4,000. Disregard the applicable failure to pay penalty and its associated interest.

1) Joe returned to work in August 2020 after staying home with the kids has $60,000 in wages from his new employer, Anderson Consulting. 2) Caroline is self-employed as realtor in Arlington on a full time basis. Caroline works from an office space she leases from Coldwell Banker, not out of their home. Information about her business is determined below. Gross Receipts from commissions $80,000 Ordinary and Necessary Business Expenses $40,000 Total Meals and Entertainment Expenses (not included above) $12,000

Note: Carolines ordinary and necessary business expenses can be separated as follows: 25% for legal and professional services, 25% for office expenses, 25% for utilities, 25% for rent of other business property. 3) Joe and Caroline have investments which generate the following items: Wells Fargo Bank Savings Interest $5,000 Virginia State Bond Interest $1,000 United States Treasury Note Interest $4,000

4) Joe has a side business of building and developing board games that the IRS has characterized as a hobby for tax purposes. The information for this hobby is as follows: Gross Receipts from customers $10,000 Ordinary and Necessary Business Expenses $15,000 5) Joe and Caroline have the following personal expenses: Medical expenses $10,000 Deductible state and local taxes $12,000 Deductible Mortgage Interest on their home $9,000 Deductible charitable contributions $2,000 6) In 2019, Joe and Caroline had a combined AGI of $100K