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Fill in the blanks below regarding the 2018 tax liability for Jim and Sue (due April 15^th, 2019), a married couple with two young children. Jim earned $65,000 in salary as a government worker, and Sue earned $95,000 in commissions as a stockbroker. Sue also made a net profit in 2018 of $4,000 in day trading (i.e., buying and selling a stock over a short period of time). They also received an inheritance in of $25,000 in March of 2018 when Jims great aunt died. On December 30^th of 2018, they sold 200 shares of Beta Zerc Corp. stock for $30.00 per share that they had bought in May of that year for $20.00 per share. The stock paid them a total of $1 per share in dividends during 2018 (ignore transactions costs for the test but, FYI, they are tax deductible). Jim bought a 1962 Corvette in February of 2017 for $55,000 and sold it in October of 2018 for $63,000. Both Jim and Sue maximized their (traditional) IRA contributions of $5,500 each.

For 2018 taxes, the IRS allows tax payers an exemption of $4,000 per qualified individual. The standard deduction for 2018 is $24,000 for a married couple filing jointly (as in this case). The tax rate on long term capital gains and dividends is 20%. Jim and Sues expenses that qualified as deductions were $11,500 for property taxes paid during the year, and $5,800 in mortgage interest. Sue also had $3,500 in qualified job related expenses. They also donated a total of $2,000 to qualified charities. The marginal tax rates for a married couple filing jointly are listed below.

Refer to Jim and Sue's financial information. For tax purposes, what are their total Exclusions and Adjustments? $____________

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