Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2007. Alfred and Beulah will file a joint return for 2008. Alfred's Social...

Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2007. Alfred and Beulah will file a joint return for 2008. Alfred's Social Security number is 111-11- 1111. Beulah's Social Security number is 123-45-6789, and she adopted "Old" as hermarried name. They live at 211 Brickstone Drive, Atlanta, GA 30304.Alfred was divorced from Sarah Old in March 2007. Under the divorce agreement, Alfred is to pay Sarah $1,250 per month for the next 10 years or until Sarah's death, whichever occurs first. Alfred pays Sarah $15,000 in 2008. In addition, in January 2008, Alfred pays Sarah $50,000, which is designated as being for her share of the marital property. Also, Alfred is responsible for all prior years' income taxes. Sarah's Social Security number is 123-45-6788.Alfred's salary for 2008 is $110,000, and his employer, Cherry, Inc. (Federal I.D. No. 98-7654321), provides him with group term life insurance equal to twice his annual salary. His employer withheld $15,400 for Federal income taxes and $3,400 for state income taxes. The following amounts were withheld for PICA taxes: $6,324 ($102,000 x 6.2%) for Social Security and $1,595 ($110,000 x 1.45%) for Medicare.Beulah recently graduated from law school and is employed by Legal Aid Society, Inc. (Federal I.D. No. 11-1111111), as a public defender. She receives a salary of $40,000 in 2008. Her employer withheld $7,500 for Federal income taxes and $2,300 for state income taxes. The following amounts were withheld for PICA taxes: $2,480 ($40,000 x 6.2%) for Social Security and $580 ($40,000 x 1.45%) for Medicare.Beulah has $1,800 in qualified dividends on Yellow Corporation stock she inherited. Beulah receives a $950 refund of 2007 state income taxes. She used the standard deduction on her 2007 Federal income tax return. Alfred receives a $1,600 refund on his 2007 state income taxes. He itemized deductions on his 2007 Federal income tax return. Alfred and Beulah pay $4,800 interest and $1,450 property taxes on their personal residence in 2008. Their charitable contributions total $1,400 (all to their church). They paid sales taxes of $1,400 for which they maintain the receipts.Compute the Olds' net tax payable(or refund due) for 2008. If you use tax forms for your solution, you will need Form 1040 and Schedules A and B. Suggested software: TaxCut.