Howard Gartman is a 40% partner in the Horton & Gartman Partnership. During 2017, the partnership reported the total items below (100%) on its Form 1065:

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

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

Income
Dawn’s salary	$40,000
Qualified dividends	3,000
Deductions
Mortgage interest	9,000
Real estate taxes	3,800
Charitable contributions	1,000

Howard and Dawn have two dependent children. During 2017, Dawn had $4,500 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 2017 and whether they have a balance due or a tax refund. Ignore the child tax credits and the election to take state sales tax as an itemized deduction.