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Scenario $1$: Qualified Birth or Adoption

Sarah and David, both age $52,$ recently adopted a child. They take a $$15,000$ distribution from their Traditional IRA to cover qualified adoption expenses.

Combined Wages: $$80,000$

Interest and Dividend Income: $$2,000$

Itemized Deductions: $$22,000$

Allowable deduction for self$-$employment tax: None

Calculate:

The portion of the distribution subject to the $10\%$ early withdrawal penalty.

AGI, Taxable Income, and Total Tax Liability.