Question
andy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandy worked as a computer technician at a
andy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandy worked as a computer technician at a local university earning a salary of $154,100, and John worked part time as a receptionist for a law firm, earning a salary of $31,100. Sandy also does some Web design work on the side and reported revenues of $6,100 and associated expenses of $1,800. The Fergusons received $1,220 in qualified dividends and a $305 refund of their state income taxes. The Fergusons always itemize their deductions, get the full benefit of deducting the entire amount of state income taxes paid, and their itemized deductions were well over the standard deduction amount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2023 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,925. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse of $11,050 (divorced 12/31/2014). Child support payments for Sandy's child with her former spouse of $4,310. $12,410 of real property taxes. John was reimbursed $705 for employee business expenses he incurred. He was required to provide documentation for the expenses to his employer. $3,600 to Kid Care day care center for Samanthas care while Sandy and John worked. $16,100 interest on their home mortgage ($400,000 acquisition debt). $3,315 interest on a $44,200 home-equity loan. They used the loan to pay for a family vacation and new car. $16,050 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $610 and c
ost $3,050. Comprehensive Problem 8-85 Part b and c (Algo) Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. Sandy and John Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Sandy (DOB 11/07/1970): 111-11-1111 John (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Note: The taxpayer should be provided in the sequence it is provided in the question data. Any rows should not be skipped while entering the dependents in 1040 PG 1. Ferguson's did not transact in any virtual currency. Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2023 tax rules regardless of year on tax form.
After Class 15 (1 of 2)-Individual Tax Return problems (... (i) Help 3 7 points 800:40:22 eBook Print Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandy worked as a computer technician at a local university earning a salary of $154,100, and John worked part time as a receptionist for a law firm, earning a salary of $31,100. Sandy also does some Web design work on the side and reported revenues of $6,100 and associated expenses of $1,800. The Fergusons received $1,220 in qualified dividends and a $305 refund of their state income taxes. The Fergusons always itemize their deductions, get the full benefit of deducting the entire amount of state income taxes paid, and their itemized deductions were well over the standard deduction amount last year. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2023 AMT exemption for reference. The Fergusons reported making the following payments during the year: - State income taxes of $4,925. Federal tax withholding of $21,000. - Alimony payments to Sandy's former spouse of $11,050 (divorced 12/31/2014). - Child support payments for Sandy's child with her former spouse of $4,310. - $12,410 of real property taxes. - John was reimbursed $705 for employee business expenses he incurred. He was required to provide documentation for the expenses to his employer. - \$3,600 to Kid Care day care center for Samantha's care while Sandy and John worked. - $16,100 interest on their home mortgage ($400,000 acquisition debt). - \$3,315 interest on a $44,200 home-equity loan. They used the loan to pay for a family vacation and new car. - $16,050 cash charitable contributions to qualified charities. - Donation of used furniture to Goodwill. The furniture had a fair market value of $610 and cost $3,050. Comprehensive Problem 8-85 Part b and c (Algo) Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. Sandy and John Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Sandy (DOB 11/07/1970): 111-11-1111 John (DOB 6/24/1972): 222-22-2222Step by Step Solution
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