Bob (age 40) and Susan (age 39) Cowen are married. Susan works as a retail manager and Rob is a self-employed electrician but does not maintain a home office. Their 2015 tax and other information are as follows:

Salary – Susan

75,000

Federal withholding on salary

24,000

State withholding on salary

4,000

Interest income on municipal bonds:

State of Connecticut

2,000

Savings account interest

900

Dividends from RGR, Inc. (all are non-qualified)

4,000

Value of employer provided medical insurance

2,000

Inheritance from Susan’s father’s estate

7,000

Interest paid on personal car loan

800

Interest paid on personal loan

1,000

Child support paid to Bobb’s ex-wife

10,000

Alimony paid to Bob’s ex-wife

3,000

Qualified Out of Pocket Medical Expenses

4,000

Donations to church

Real Estate taxes on primary residence

2,500

6,000

Mortgage interest on primary residence (<$1M)

4,000

Bob’s business revenues

50,000

Bob’s business expenses

17,000

Required: Using the tax formula format, determine the following for the Cowen’s 2015 tax year (show all calculations)

All Income $___________

Exclusions (if any) $ ___________

Gross income (including Bob’s SE income) $ ___________

Deductions For AGI $ ___________

Adjusted gross income $ ___________

Itemized deduction or standard deduction amount $ ___________

Deduction for exemptions $ ___________

Taxable income $ ___________

Income tax liability $ ___________

Self-employment tax liability $ ___________

Net tax due or refund (show calculation) $ ___________