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 111-11-1112. 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 self-employed as the sole proprietor of an unincorporated business, and Sarah is a corporate executive. Tim reports the following 2016 income and expenses from his business.

Gross income .............................................................................$325,000

Business expenses ........................................................................201,000

Sarah was covered for the entire year by her employer's health insurance policy.

Other records related to Sarah's employment provide the following information.

Salary ...........................................................................................................$145,000

Unreimbursed travel expenses (including $200 of meals) .........................1,100

Unreimbursed entertainment expenses ..........................................................500

Other pertinent 2016 information follows.

Proceeds from sale of stock acquired on July 15, 2016

(cost of $12,000), and sold on August 1, 2016 ...........................................$ 9,800

Proceeds from sale of stock acquired on September 18, 2015 (cost of $5,000),

and sold on October 5, 2016 ..........................................................................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, Federal income tax ..................................................................34,000

Compute the 2016 net tax payable or refund due for Tim and Sarah Lawrence.