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Reba and Charlie who are married filing jointly have three children ages 5,9 and 17 who are dependents

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Reba and Charlie who are married filing jointly have three children ages 5,9 and 17 who are dependents. They have a W2 income of $90,000. They have $13,500 in Federal

taxes withheld Reba and Charlie have the following expenses for the 2018 tax year:

 

Interest on a home equity loan taken out in 2018 loan issued for $100,000, used for secondary education- $2500

Interest on first mortgage (original loan balance $450,000)  $12,000

Property taxes on personal residence-$8000

State income tax-$8000

State sales tax-$4500

 

What is Reba and Charlie's taxable income?

 

a, $55,000; 

b, $57,500; 

c, $62,000;

d. $65,600