Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3 Required information [The following information applies to the questions displayed below) John and Sandy Ferguson got married eight years ago and have a seven-year-old

image text in transcribed
image text in transcribed
image text in transcribed
3 Required information [The following information applies to the questions displayed below) John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter. Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4.000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. Assume that the Fergusons received an advance rebate of $2,400 in 2020. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9. Tax Rate Schedule. Dividends and Capital Gains Tox Rates 2020 AMT exemption for reference. The Fergusons reported making the following payments during the year. State income taxes of $4,400. Federal tax withholding of $21,000 Alimony payments to John's former wife of $10.000 (divorced in 2014) Child support payments for John's child with his former wife of $4,100 $12.200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car $15,000 cash charitable contributions to qualified charities Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000. a. What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? (Round your intermediate computations to the nearest whole dollar amount.) FLEURES ERU U UU UUUUUUUUUUUUURE 1 Enter the amount from Form 1040 or 1040-SR, line 11b, if more than zero. If Form 1040 or 1040-SR, line 11b, is zero, subtract lines 9 and 10 of Form 1040 or 1040-SR from line 8b of Form 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.). 1 2a W filing Schedule A (Form 1040 or 1040-SR), enter the taxes from Schedule A, line 7; otherwise, enter the amount from Form 1040 or 1040-SR, Ine 9. 2a b Tax refund from Schedule 1 (Form 1040 or 1040-SR), line 1 or line 8. 2b c Investment interest expense difference between regular tax and AMT) 2c d Depletion (difference between regular tax and AMT) 2d . Net operating loss deduction from Schedule 1 (Form 1040 or 1040-SR), line 8. Enter as a positive amount 2e Alternative tax net operating loss deduction 21 Interest from specified private activity bonds exempt from the regular tax 29 h Qualified small business stock, see instructions 2h Exercise of incentive stock options (excess of AMT income over regular tax income) 21 1 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) 2 1 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) k Disposition of property (difference between AMT and regular tax gain or loss) 1 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation costs (difference between regular tax and AMT). p Long-term contracts (difference between AMT and regular tax income) 9 Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) Income from certain installment sales before January 1, 1987 Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines 1 through 3.0f married fling separately and line 4 is more than 5733.700. See Instructions.) Pardul Alternative Minimum Tax (AMTI 21 2k 21 2m 2n 20 2p 29 21 2s 20 3 I 3 Required information [The following information applies to the questions displayed below) John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter. Samantha. In 2020, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4.000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions were well over the standard deduction amount last year. Assume that the Fergusons received an advance rebate of $2,400 in 2020. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9. Tax Rate Schedule. Dividends and Capital Gains Tox Rates 2020 AMT exemption for reference. The Fergusons reported making the following payments during the year. State income taxes of $4,400. Federal tax withholding of $21,000 Alimony payments to John's former wife of $10.000 (divorced in 2014) Child support payments for John's child with his former wife of $4,100 $12.200 of real property taxes. Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked $14,000 interest on their home mortgage ($400,000 acquisition debt). $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car $15,000 cash charitable contributions to qualified charities Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000. a. What is the Fergusons' 2020 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? (Round your intermediate computations to the nearest whole dollar amount.) FLEURES ERU U UU UUUUUUUUUUUUURE 1 Enter the amount from Form 1040 or 1040-SR, line 11b, if more than zero. If Form 1040 or 1040-SR, line 11b, is zero, subtract lines 9 and 10 of Form 1040 or 1040-SR from line 8b of Form 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.). 1 2a W filing Schedule A (Form 1040 or 1040-SR), enter the taxes from Schedule A, line 7; otherwise, enter the amount from Form 1040 or 1040-SR, Ine 9. 2a b Tax refund from Schedule 1 (Form 1040 or 1040-SR), line 1 or line 8. 2b c Investment interest expense difference between regular tax and AMT) 2c d Depletion (difference between regular tax and AMT) 2d . Net operating loss deduction from Schedule 1 (Form 1040 or 1040-SR), line 8. Enter as a positive amount 2e Alternative tax net operating loss deduction 21 Interest from specified private activity bonds exempt from the regular tax 29 h Qualified small business stock, see instructions 2h Exercise of incentive stock options (excess of AMT income over regular tax income) 21 1 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) 2 1 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) k Disposition of property (difference between AMT and regular tax gain or loss) 1 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation costs (difference between regular tax and AMT). p Long-term contracts (difference between AMT and regular tax income) 9 Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) Income from certain installment sales before January 1, 1987 Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines 1 through 3.0f married fling separately and line 4 is more than 5733.700. See Instructions.) Pardul Alternative Minimum Tax (AMTI 21 2k 21 2m 2n 20 2p 29 21 2s 20 3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

17th Edition

1119613698, 978-1119613695

More Books

Students also viewed these Accounting questions