Karin and Chad (Ages 30 and 31, Respectively) Are Married

Essay

Karin and Chad (ages 30 and 31, respectively) are married and together have $110,000 of AGI. This year they have recorded the following expenses:
$\begin{array}{lr}\text { Home mortgage interest } & \$ 16,640 \\\text { Real estate taxes } & 5,400 \\\text { State income taxes paid } & 6,300 \\\text { Medical expenses (unreimbursed) } & 1,800 \\\text { Employee business expenses (unreimbursed) } & 450 \\\text { Charitable contributions (cash to their church) } & 760\end{array}$ Karin and Chad will file married joint with two personal exemptions. Calculate their taxable income.