EXHIBIT 8-9 Child and Dependent Care Credit Percentage But not over Then the percentage is 35% 34 33 32 31 30 29 28 If AGI is over $ 0 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 Source: $21(e)(6). 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit 27 26 25 24 23 22 21 20 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798 50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,400 10% of taxable income $ 19,400 $ 78,950 $1,940 plus 12% of the excess over $19,400 $ 78,950 $168.400 $9,086 plus 22% of the excess over $78,950 $168.400 $321,450 $28,765 plus 24% of the excess over $168,400 $321.450 $408,200 65,497 plus 32% of the excess over $321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408,200 $612,350 $164,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,850 10% of taxable income $ 13,850 $ 52,850 $1,385 plus 12% of the excess over $13,850 $ 52,850 $ 84,200 $6,065 plus 22% of the excess over $52,850 $ 84,200 $160,700 $12,962 plus 24% of the excess over $84.200 $160,700 $204,100 $31,322 plus 32% of the excess over $160,700 $204,100 $510,300 $45,210 plus 35% of the excess over $204,100 $510,300 $152,380 plus 37% of the excess over $510,300 Thx Rates for Net Capital Gains and Qualified Dividends Thahle Income Rate Married Filing Jointly Married Piling Separately Single Head of Hoghold Trusts and Estates 09 50 - $78,750 50 - $19.375 50 - $39.375 $0-52,750 50 - 52.650 1568 $78,751 - 488.850 $39,376 - $244 425 $39,376 - 5434.550 $52,751 - $461,700 $2.651 - $12,950 205 $48.SI 5244 426+ 5434531+ $461,701 $12.951 *This rule applies to the topilgaland qualified dividends that fall with the range of stable income specified in the table (capital gas and qualified dividends are included in the income last for this purpose). John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2019, John worked as a computer technician at a local university earning a salary of $153,300, and Sandy worked part-time as a receptionist for a law firm earning a salary of $30,300. John also does some Web design work on the side and reported revenues of $5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qualified dividends and a $265 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 Exhibit 8-9.Tax Rate Schedule. Dividends and Capital Gains Tax Rates for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,725. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,650 (divorced in 2014). Child support payments for John's child with his former wife of $4,230. $12,330 of real property taxes. Sandy was reimbursed $665 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. $15,300 interest on their home mortgage ($400,000 acquisition debt). $3,195 interest on a $42,600 home-equity loan. They used the loan to pay for a family vacation and new car. $15,650 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $530 and cost $2,650. . . . . Comprehensive Problem 8-85 Part a a. What is the Fergusons' 2019 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.) Tax refund EXHIBIT 8-9 Child and Dependent Care Credit Percentage But not over Then the percentage is 35% 34 33 32 31 30 29 28 If AGI is over $ 0 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 Source: $21(e)(6). 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit 27 26 25 24 23 22 21 20 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 $153,798 50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,400 10% of taxable income $ 19,400 $ 78,950 $1,940 plus 12% of the excess over $19,400 $ 78,950 $168.400 $9,086 plus 22% of the excess over $78,950 $168.400 $321,450 $28,765 plus 24% of the excess over $168,400 $321.450 $408,200 65,497 plus 32% of the excess over $321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408,200 $612,350 $164,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,850 10% of taxable income $ 13,850 $ 52,850 $1,385 plus 12% of the excess over $13,850 $ 52,850 $ 84,200 $6,065 plus 22% of the excess over $52,850 $ 84,200 $160,700 $12,962 plus 24% of the excess over $84.200 $160,700 $204,100 $31,322 plus 32% of the excess over $160,700 $204,100 $510,300 $45,210 plus 35% of the excess over $204,100 $510,300 $152,380 plus 37% of the excess over $510,300 Thx Rates for Net Capital Gains and Qualified Dividends Thahle Income Rate Married Filing Jointly Married Piling Separately Single Head of Hoghold Trusts and Estates 09 50 - $78,750 50 - $19.375 50 - $39.375 $0-52,750 50 - 52.650 1568 $78,751 - 488.850 $39,376 - $244 425 $39,376 - 5434.550 $52,751 - $461,700 $2.651 - $12,950 205 $48.SI 5244 426+ 5434531+ $461,701 $12.951 *This rule applies to the topilgaland qualified dividends that fall with the range of stable income specified in the table (capital gas and qualified dividends are included in the income last for this purpose). John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2019, John worked as a computer technician at a local university earning a salary of $153,300, and Sandy worked part-time as a receptionist for a law firm earning a salary of $30,300. John also does some Web design work on the side and reported revenues of $5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qualified dividends and a $265 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 Exhibit 8-9.Tax Rate Schedule. Dividends and Capital Gains Tax Rates for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,725. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,650 (divorced in 2014). Child support payments for John's child with his former wife of $4,230. $12,330 of real property taxes. Sandy was reimbursed $665 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. $15,300 interest on their home mortgage ($400,000 acquisition debt). $3,195 interest on a $42,600 home-equity loan. They used the loan to pay for a family vacation and new car. $15,650 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $530 and cost $2,650. . . . . Comprehensive Problem 8-85 Part a a. What is the Fergusons' 2019 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.) Tax refund