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Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo) Skip to question [The following information applies to the questions displayed
Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Algo)
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[The following information applies to the questions displayed below.]
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $154,200, and John worked part time as a receptionist for a law firm earning a salary of $31,200. Sandy also does some Web design work on the side and reported revenues of $6,200 and associated expenses of $1,850. The Fergusons received $1,240 in qualified dividends and a $310 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, 2022 AMT exemption for reference.
The Fergusons reported making the following payments during the year:
- State income taxes of $4,950. Federal tax withholding of $21,000.
- Alimony payments to Sandy's former spouse of $11,100 (divorced 12/31/2014).
- Child support payments for Sandy's child with her former spouse of $4,320.
- $12,420 of real property taxes.
- John was reimbursed $710 for employee business expenses he incurred. He was required to provide documentation for her expenses to her employer.
- $3,600 to Kid Care day care center for Samanthas care while Sandy and John worked.
- $16,200 interest on their home mortgage ($400,000 acquisition debt).
- $3,330 interest on a $44,400 home-equity loan. They used the loan to pay for a family vacation and new car.
- $16,100 cash charitable contributions to qualified charities.
- Donation of used furniture to Goodwill. The furniture had a fair market value of $620 and cost $3,100.
a. What is the Fergusons' 2022 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?
Note: Round your intermediate computations to the nearest whole dollar amount.
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