Peggy and Clyde Wagner have an AGI of $65,000 for 2018. Their expenses for 2018 are: Prescription drugs  $  4,580 Interest on home mortgage    9,700 Doctor and dental bills paid     2,700

Peggy and Clyde Wagner have an AGI of $65,000 for 2018. Their expenses for 2018 are:

 Prescription drugs  $  4,580

 Interest on home mortgage    9,700

 Doctor and dental bills paid     2,700

 Hospital bills paid    1,900

 Property taxes paid on home    3,650

 State Income Taxes withheld from wages    2,700

 Safe deposit box rental  360

 Interest on automobile loan    1,750

 Credit Card Interest paid  500

 Medical Insurance Premiums    2,600

 Eyeglasses for Peggy  565

 Fair Market Value of TPP, Inc stock donated to church  2,800

 Union Dues paid by Clyde    720

 Cash contributions to church     2,800

 Tax preparation fee  450

Both Peggy and Clyde are under 40 and have lived in Oregon for the entire year.  They have four children, ages 8, 10, 14 and 17.  They will file a joint income tax return for this year.  

a. Calculate their total itemized deductions?

b.  What is their taxable income?

c.   Calculate their tax liability.

d.  If they had a total of $5,600 of Federal withholding from their employment, will they   have an overpayment (refund) or underpayment (tax to pay)?