Alfred E. Old and Beulah A. Crane, each age 42, married on September 7, 2007. Alfred and Beulah will file a joint return for 2012. 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 2012. Alfred's Social Security number is 111-11- 1111. Beulah's Social Security number is 123-45-6789, and she adopted "Old" as her married name. They live at 211 Brickstone Drive, Atlanta, GA 30304.

Alfred was divorced from Sarah Old in March 2012. 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 2014. In addition, in January 2014, 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 2014 is $150,000, 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 $24,900 for Federal income taxes and $8,000 for state income taxes. The proper amounts were withheld for withheld for FICA taxes.

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 2014. Her employer withheld $7,500 for Federal income taxes and $2,400 for state income taxes. The proper amounts were withheld for withheld for FICA taxes.

Beulah has $2,500 in qualified dividends on Yellow Corporation stock she inherited. Beulah receives a $1,900 refund of 2013 state income taxes. Alfred and Beulah receive a $1,900 refund in their 2013 state income tax. They itemized deductions on their 2013 Fed. income tax return (total of $15,000). Alfred and Beulah pay $4,500 interest and $1,450 property taxes on their personal residence in 2014. Their charitable contributions total of $2,400 (all to their church) . They paid sales taxes of $1,400, for which they maintain receipts. Both spouses had health insurance for all months of 2014 and do not want to contribute to the presidential election campaign. 

Compute the Olds' net tax payable (or refund due) for 2014. If you use tax forms for your solution, you will need Form 1040 and Schedules A and B.  Determine the 2015 taxable income and tax liability. Assume group term life insurance inclusion of $300.

Computation of Old’s net tax payable (refund due) for 2014Income:Alfred’s SalaryBeular’s SalaryOther Income:Life Insurance in excess of $50,000Qualified DividendsGross Income...