Albert S. Moore is 35 years old and is married to Bonnie Moore who is 37. They file a joint return and have two dependent children. In 2012, Albert and Bonnie had the following transactions:
1) Albert received $96,000 from Plum Company. He worked on a construction project in Mexico from July 1, 2011 through December 31, 2012. Witholding for Federal income tax was $4,600. The proper amount of FICA taxes was witheld.
2) Albert & Bonnie received $1,600 of interest on US goverment bonds and $7,000 of interest on Montgomery County School bonds.
3) Bonnie was involved in an automobile accident in 2011 and incurred $12,000 of medical expenses. Insurance paid $8,000 of the expenses, and Albert and Bonnie deducted the remaining $4,000 on their 2011 return. During 2012, Bonnie received a setlement from the other driver's insurance company. She received $12,000 for her medical expenses, $70,000 as compensatory damages for the physical injury, and $40,000 of punitive damages.
4) Bonnie received 10 shares of Chery Inc as a stock dividend. The shares received had a fair market value of $900. Bonnie had the option of receiving cash equal to the value of the shares but chose not to do so.
5) Albert paid $12,000 of alimony to his first wife, Rosa.
6) Albert and Bonnie's itemided deductions were as follows:
a) State income taxes paid and witheld totaled $2,900. In addition, a $1,600 overpayment for their 2011 state taxes (deducted on the 2011 Federal return as an itemized deduction) was applied to their 2012 liability.
b) Real estate taxes on their principal residence were $1,600
c) Interest on their personal residence was $3,800
d) Cash contributions to their church were $2,500
Compute the Moore's net tax payable (or refund due) for 2012