Partnership Income. Howard Gartman is a 40% partner in the Horton & Gartman Partnership.

During 2023, the partnership reported the total items below (100%) on its Form 1065:

Howard and his wife Dawn, who file a joint return, also had the following income and deductions from sources not connected with the partnership:

Howard and Dawn have two children. During 2023, Dawn had \($12,000\) in federal income taxes withheld from her salary, and Howard made four estimated tax payments of \($2,500\) each (\($10,000\) total). Compute Howard and Dawn’s Federal income tax liability for 2023, and determine whether they have a balance due or a tax refund. Ignore the child tax credits, the self-employment taxes, and the qualified business income deduction.

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Ordinary income $180,000 Qualified dividends 10,000 Long-term capital loss (12,000) Long-term capital gain 28,000 Charitable contributions 4,000 Cash distributions to partners 150,000