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Can you show me how to solve this? John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In

Can you show me how to solve this?

John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In 2017, John worked as a computer technician at a local university earning a salary of $52,000, 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. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).Use Tax Rate Schedule for reference. ATTACHED

The Fergusons reported making the following payments during the year:

  • State income taxes of $4,400. Federal tax withholding of $4,000.
  • Alimony payments to John's former wife of $10,000.
  • Child support payments for John's child with his former wife of $4,100.
  • $3,200 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.
  • In addition to the $750 of Web design expenses, John attended a conference to improve his skills associated with his Web design work. His trip was for three days and he incurred the following expenses: airfare $370, total taxi fares for trip $180, meals $80, and conference fee of $200.
  • $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked.
  • $14,000 interest on their home mortgage.
  • $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car.
  • $6,000 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.

image text in transcribed
2017 Tax Rate Schedule Schedule XSlngle Schedule Z-Head of Household If taxable If taxable Income ls But not: Income ls But not over: over: The tax Is: over: over: The tax ls: $ 0 $ 9,325 10% of taxable income $ 0 $ 13,350 10% of taxab1e income $ 9.325 $ 32.950 $932.50 plus 15% of the excess $ 13,350 $ 50,800 $1,335.00 ptus 15% of the excess over $9,325 over $13,350 $ 32,950 $ 91.900 $5226.25 plus 25% of the excess 5- 50,800 $131,200 $6,952.50 plus 25% of the excess over $32,950 over $50,800 $ 91,900 $191,550 $ 18,713.75 plus 28% 0f the excess $131,200 $212,500 $22,052.50 pfus 28% of the excess over $91,900 over $131,200 $191,650 $416,200 $46.643.25 plus 33% of the excess $212,500 $416,200 $49,816.50 ptus 33% of the excess over.$191.650 over $212,500 $415,700 $418,400 $120,910.25 plus 35% of the excess $415,200 $444,550 $1 12,202.50 plus 35% of the excess over $416,200 over $416,200 $418,400 $121,505.25 plus 39.6% of the excess $444,550 $126,950.00 plus 39.6% of the excess cver $418,400 over $444,550 Schedule Y'l-Nlarrled Flllng Jolntly or Qualifying Widow(er) If taxable |f taxable Income ls But not Income ls But not over: oven The tax I5: over: over: The tax Is: $ 0 $ 9,325 10% of taxable income 35 0 $ 18,650 10% of taxable income $ 9,325 $ 32,950 $932.50 plus 15% of the excess $ 18,650 $ 25,900 $1865.00 plus 15% ofti'ie excess over $9,325 Over $18,650 $ 32,950 $ 75,550 $5,226.25 p1us 25% of the excess $ 25,900 $153,100 $10,452.50 plus 25% of the excess over $32,950 over $25,900 $ 26,550 $1 16,625 $14,826.25 ptus 28% of the excess $153,100 $233,350 $29.752.50 plus 2896 of the excess over $75,550 Over $153,100 $1 16,625 $208,350 $26.1 1 1.25 plus 33% of the excess $233,350 $416,200 $52,222.50 plus 33% ofthe excess over$115,625 cvet $233,350 $208,350 $235,350 $56,364.00 ptus 35% of the excess $416,200 $420,200 $1 12,228.00 plus 35% of the excess over $208,350 over $416,200 $235,350 $65,814.00 ptus 39.6% of the excess $420,200 $131,628.00 plus 39.6% of the excess over $235,350 over $420,200

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