Phil and Susan are married taxpayers filing a joint return. The couple have two dependent children. Susan

Question:

Phil and Susan are married taxpayers filing a joint return. The couple have two dependent children. Susan has wages of $34,000 in 2016. Phil does not work due to a disability, but he is a buyer and seller of stocks on the Internet. He generally buys and holds for long-term gain, but occasionally gets in and out of a stock quickly. The couple's 2016 stock transactions are detailed below. In addition, they have $2,300 of qualifying dividends.