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H$,$ age $45,$ and W$,$ age $43,$ are married with a $5-$month$-$old son. H and W always file jointly. H is the vice president of a local bank and is paid a salary of $$95,000.$ W is registered nurse at a large hospital and is paid a salary of $$80,000.$ H is a partner in BC partnership. He is a $50\%$ owner. The partnership had total income of $$50,000($qualified business income$)$ in $2024$ and distributed $$5,000$ to H in $2024.$ In addition to the above income, H and W received the following in $2024$:

$$$$2,000$ qualified cash dividend on ABC, Inc.

stock.

$$$$1,200$ interest on State of Maryland bonds that H

Owns

$$$$5,000$ on interest from a saving account that H and W own together.

$$W received a check for $$400$ from her employer in recognition of her outstanding service to the hospital during the past $10$ years.

$$W and H received $$1\mathrm{.}800$ refund in $2024$ on their $2023$ state income taxes. Their itemized deductions in $2022$ totaled $$26,000.$

$$The bank provides H with $$90,000$ of group term life insurance protection. The bank provides all full$-$time employees with group term insurance. H has worked for the bank all year. $($Under the Uniform Premiums, the cost per $$1,000$ of protection per month is $\mathrm{.}15$ for a $45-49$ year old.$)$

The bank pays $$225$ a month for a parking space for H$.$

W sold his car for $$6,000.$ He paid $$5,500$ for it $10$

months ago.

$$The hospital provides W with $$1,000$ for child care all of which she used to pay a nanny to take care of her $5-$month$-$old.

$$H has access to a gym on his work's premises. A gym membership costs $$400$ a year.

$$Because W must be available should an emergency arise, she is required to eat her lunches in the hospital cafeteria. The value of the free meals provided by her employer during $2023$ was $$1,100.$

$$W was injured on the job in $2023$ and received worker's compensation in the amount of $$2,000.$

$$H$\text{'}$s father passed away in February $2023$ leaving H a house valued at $$300\mathrm{.}000.$ H rented the land to R from March to December $31,2023$ for $$800$ a month.

W$\text{'}$s father gave her a gift of $$20,000$ in $2024.$

$$H also received $$100,000$ in life insurance when his father died.

$$H purchased an annuity years ago for $10,000.$ The annuity will pay $2,000$ for $6$ years. In $2023$ H received the first $2,000.$

$$H paid $$2,000$ in alimony to his ex$-$wife $($divorce

$2017)$ and $$4,000$ in child support.

$$H and W paid $$7,000$ in qualified mortgage interest.

$$H and W paid $$6,000$ in real property taxes and $$13,000$ in state income taxes.

$$Hand W had the following expenses not covered by medical insurance: $$19,500$

$$Hand W made $$19,000$ in qualified charitable contributions

answer the following questions

$$What items are excluded from gross income? $($list below$)$

$$What is H and W$\text{'}$s gross income? $($show items in gross income below$)$

What is H and W$\text{'}$s adjusted gross income? $($show for AGI deductions below$)$:

$$What is H and W$\text{'}$s taxable income?$($show from AGI deductions below$)$

$$What is H and W$\text{'}$s tax liability? $($show work below$)$:

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