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John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,400, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,400. John also does some Web design work on the side and reported revenues of $4.400 and associated expenses of $950. The Fergusons received $880 in qualified dividends and a $220 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 the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10. Tax Rate Schedule. Dividends and Capital Gains Tax Rates 2021 AMT exemption for reference, The Fergusons reported making the following payments during the year.  State income taxes of $4,500. Federal tax withholding of $21,000,  Alimony payments to John's former wife of $10,200 (divorced 12/31/2014).  Child support payments for John's child with his former wife of $4140.  $12,240 of real property taxes  Sandy was reimbursed $620 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.  $14,400 interest on their home mortgage ($400,000 acquisition debt). $3,060 interest on a $40,800 home-equity loan. They used the loan to pay for a family vacation and new car. $15,200 cash charitable contributions to qualified charities,  Donation of used furniture to Goodwill. The furniture had a fair market value of $440 and cost $2,200. . Complete pages 1 and 2. Schedule 1. Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. John and Sandy Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: John (DOB 11/07/1970): 111-11-1111 Sandy (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Form 1040 Department of the Treasury--Internal Revenue Service (9) U.S. Individual Income Tax Return 2020 OMB No 1545-0074 IRS Use Only --Do not write or staple in this space Fling Status Single Marted filling jordy Morted in separately (MP3) Head of household Qualifying widown low) Check only you checked MES box, enter the name of your spouse. If you checked the HOH Or Worter the child's name the qualifying person is ne box achd but not your dependent Your first name and middel Last name Your social security number frame and midten Last name Spouse's social security number Home resumber and you have a PO box, sections Apt no Presidential Election Campaign Clown oport you have for a compete State 2P code Check here if you or your use ingly want to go to the finding a box below will not chang your exorrard Foreign country Foreign proccounty Foreign postal You Spouse At any time during 2020. did you receive soll send exchange or otherwise soguire any financial interest in any virtual currency? Yes Ne Standard Someone can can You as een Y as a renderit Deduction Soutener you were we Againese You www.bombefore Jury 21 Are Spouse Was bombefore a 256 Dependents structions He to you Version Cho Credo depende mont U one and the BED DOO (2) Social Security number Q Relationship to you the instructions (1) Fistiane Child tax credit Credit for other dependents Last name 1 25 20 30 45 da a 33 Taxatierest Ordinary dividende Taxable amount Taxable amount b Taxable amount 50 50 2 1 Wages sanes, tips, el Altach Form 2 2a Taxempt interest Sa Qualified dividende H HA 4why theo Sa Pensions and artis 6a Sol security benefits 7 Capital gain or loss) Amount som income from Schedule 1, line Add in 1, 2, 3, 4, 5, , 7, and 8. This is your owncome 10 Adjustments to income From Schedule 1, the 22 Charitate contributions if you take the standard duction Struction Addines 10 at 10. There are you starts to more 11 Stradline 10 from line. This is you do nome 12 Standard desaction or med deductions (trom Schedule 13 led business income deduction Attach Fon 305 FormA 14 Adres 12 and 13 15 Tema Sutractine 14 tom interesse 100 100 100 11 12 13 14 15 Form 1040 (2020) o 4972 16 17 18 19 20 21 22 23 24 + 25 250 16 Tax (sco instructions) Amount 8814 17 Amount from Schedule 2. Ine 3. 18 Add lines 16 and 17 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Addnes 19 and 20 22 Subtractine 21 from line 18. If rere or less entero 23 Other taxes, including weit employment tax, from Schedule 2. ine 10 24 Add Ines 22 and 23. This is your total tax 25 Federal income tax withheld from Forms) W-2 Form(s) 1099 Other forms tree instruction Add line 25 through 256 24 2020 estimated tax payments and amount applied tom 2010 rotum 27 Eamed Income credit (EIC) 28 Additional child tax credit Attach Schedule 6812 29 American opportunity credit from Form 1869, line 3 30 Recovery rebate credit See Instructions 31 Amount from Schedule 3. line 13 32 Addnes 27 through 31. These are your total other payments and refundable credits 33 Add lines 250, 26, and 32. These are your total payments 34 If line 33 is more than ine 24, subtract line 24 from line 33. This is the amount you overpad 35a Amount of line 34 you want refunded to you 250 250 20 27 28 29 30 31 32 33 34 m 35 NAS overpan 35a 37 to pay 34 ne more than line 24 sofractie 20 min 350 Amount of line 34 you want refunded to you: 12.408) Routing number Fe Type Checking Savings Account number 30 Amount of ine 34 you want applied to your 2021 estimated tax 37 Subtract inn 33 trom in 24. This is the amount you owe now Note: Schedule Hand Schedule Se flers, Ino 37 may not represent all of the taxes you owe tot 2020. See Schedule 3, ino 120, and its instructions for details 38 Estimated tax penalty (see instruction) Do you want to low another person to discuss the retum win the IR? So niction You Complete below NO Designeo name Phone Personal identification no number (PIN) Under penalties qui declare that I have examined the retum and accompanying schedules and statements, and to the best of my knowledge and betet, try to correct, and complete. Declaration of prepare fother than taxpayer) is based on information of which proper has any knowledge Your signature Date Your occupation WIR sent you an identity Protection PIN, enter it here ) Spouse's signature. It a joint retum, both must sign Date the IRS Set your spousen Sponses occupation Identity Protection PIN, enter it here (int) Phone no Emal address Preparer's name Preparer's signature Dale PTIN Check it O Self-employed Phone no Firm's address Firm's EN Firm's name OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Internal Revenue Service Name() shown on Form 1040, 1040 SR or 1040-NR Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.lrs.gov/Form1040 for instructions and the latest Information Attachment Sequence No. 01 Your social security number Part 1 1 1 2a 2a 3 Additional Income Taxable refunds, credits, or offsets of state and local come to Alimony received Date of original divorce or separation agreement (see instructions) Business income or dos). Attach Schedule C Other gains or (es) Anach Form 4707 Hentaire ette noyatok, partnerships, corporations, busts, etc. Attach Schedule Fam income (10) Altach Schedule Unemployment compensation Ohrome. Amount 4 4 5 5 6 6 7 7 . Part II 10 10 Combine Ines thrown that there and on Form 1040, s 1. or 1000 NR, the Adjustments to Income Educator expenses Certain business expenses of reserve performing artists, and to basis government of Attach Form 2100 Health savings account deduction Altach Form 689 Moving expers for members of the Armed Forces Attach Form 3003 11 12 12 13 13 4 5 5 Other gains or posses) Altach Form 4797 Rental state, royalties, partnerships, corporations, trusts, etc. Altach Schedule Farm income or loss Altach Schedule Unemployment compensation Other income. Amount 6 7 7 9 Part II 10 10 11 11 12 12 13 13 14 14 15 15 16 Combine Ines 1rough 8 Enter here and on Form 1040 1040 SR or 1040-NR, Iine 8 Adjustments to Income Educator expenses Certain business expenses of reservats performing artists and foo-basis government officials. Attach Form 2106 Heath savings account deduction Anach Form te Moving expenses for members of the Armed Forces. Attach For 3903 Drouet ble part of employment tax Attach Schedule SE Self-employed SEP SIMPLE, and qualified plans Sof-employed health insurance deduction Penalty on early withdrawal of savings Almony paid Recipes SSN Date of original divorce or separation agreement (se instructions) IRA deduction Studention est deduction Tuition and foes deduction Ansch Form 2017 Add Ines 10 through 21. These are your adjustments to income Enter here and en Form 1040 1040-5R or 1040 NR in 100 10 17 17 18 180 b 19 19 20 20 21 21 22 22 Additional Taxes OMB No. 1545-0074 SCHEDULE 2 (Form 1040) Department of the Treasury Internal Revenue Service Name() shown on Form 1040 1040-SR or 1040-NR 2020 Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest Information Attachment Sequence No. 02 Your social security number + 2 3 4 Part I Tax 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Fom 8962 3 Addlines 1 and 2 Enter here and on Form 1040 1040-SR, or 1040-NR, line 17 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 5 Unreported social security and Medicare tax from Form 4137 8919 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Altach Form 5320 if required 7a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 8 Taxes from Form 8050 b Form 8960 Instructions, enter code(s) 9 Section 965 net tax liability Installment from Form 965-A 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23. or Form 1040-NR line 231 For Paperwork Reduction Art Notice 5 6 7a 7b 8 10 Additional Credits and Payments SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Attach to Form 1040 or 1040-SR. Go to www.lrs.gowForm 1040 for instructions and the latest information OMB No 1545-0074 2020 Attachment Sequence No. 03 Your social security number 1 2 3 4 + 5 6 7 Part Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 2 Credit for child and dependent care expenses. Altach Form 2441 3 Education credits from Form 8863, line 19 4 Retrement savings contributions credit. Attach Form 3880 5 Residential energy credits. Attach Form 5805 6 Other credits from Form 3800 8801 7 Addines 1 through 6. Enter hore and on Form 1040 1040-SR, or 1040-NR. line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 1962 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuets. Attach Form 4136 12 Other payments or refundable credits a Form 2439 b Qualified sick and tomily leave credits from Schedule(8) Hand Form(o) 7202 Health coverage tax credit from Form 8885 d Other Deferral for certain Schedule Hor SE flers (toe instructions) 8 9 10 11 120 125 120 120 120 Form 6251 Alternative Minimum Tax-Individuals OMB No 1545-0076 2020 Attachment Sequence No: 32 Your social security number 1 Department of the Treasury Go to www.insgeviform281 for instructions and the latest Information traal Revenue Service Attach to Form 1040 1040-SR. Br 1040 NR Name() shown on Form 1040 1040 SR. 1040 NA John and Sandy Ferguson Part 1 Alternative Minimum Taxable income (See Instructions for how to complete each line) Enter the amount from Form 1040 or 1040 SR in 15 more than o Fom 1040 or 1040 SR Ine 15, is er wurde 12 and 13 of Form 1040 or 1040 Stromine 11 of Form 1010 or 1040-R and enter the root here than or enter a gave amount) ? Ning schedule Afform 1010) enter the from Sele Aine were the amount om Form 1040 1040 Rina 12 Tax round from Schedule 1 Form 1040),intorn Investment reste diference between regular and AMT  Depletion erence between tax and AMT)  Netenting to deduction from here 1 (Form 100), ne rerne poulie amount + Alemave tax nel Operating is deduction o interest from pod private activity bonds to the Oled matbuss lock struction Bereof noentivo lock option excess of income over agar tax income 1 Estats and trust anottom SchedForm 1041 12. code Disposition of property ofference between AMT and garagona) Depreciation one placed in service wherrence between regard AMT) m Passive activities forence between AMT and regular lex nome or loss) Loon (forence between AMT and red tax income aro)  Creion costo diference between regiw tax and AMT) Long-term contracts (AMT and regular tax income 4 Mining costs (ference between regia lax and AMT) Rearch and experimental considerence between regular tar and AMT 222*26*RARA 282 2m Research and experimental costs (difference between regular tax and AMT) $ Income from certain installment sales before January 1, 1907 Intangible criting costs preference 3 Other adjustments, including income based related adjustments 4 Ahernative minimum taxable income. Combine finest through all married fingreparately and line 4 is more than $745.200, soe instruction) 21 24 21 } Part Alternative Minimum Tax (AMT) Exemption IF your filing statusi AND line 4 is not over... THEN enter on line 5... Single or head of household 516,4003 72.900 Maried ting jointly or qualityna widower 1,036,000 113.400 Married ting separately 518.400 56,700 If line in over the amount shown above for your fing alu, te instructions 6 Subiradene 5 tromlinedIf more than 2010. go to line 7. I zero or less entero- here and on line 76 and 11, and go to Ine 10  you are in Form 2555, e instructions for the amount to enter  you reported capital gain distributions directly on Form 1040 or 1040, In 7 you reported qualified and on Form 1040 1040-SR, in or you had again on both in 15 and 16 of Schedule D Form 1040) (segured for the AMT necessary.com Partill on the back and enter the amount om in 40 here . Al others in a $197.900 or less (596,960 or less married in separately, multiplyine by 20% (0.28). Otherwise mutyine by 28% (0.28) and Subtract $3.958 (51,979 med fingreparately from the result Otherwise, multiplyine by 2002) and Subtract 2.0 (1.048 marteding separately from the 0 Alternative minimum a foreign tax credencia Tentative minimumtax Surat line from ine 7 Add Form 1040 or 1040 SR, in 10 minus any lax from Yom (072) and schedule 2 om 1040), in Stadt Subtract from the rest any foreign tax credit from schedule om 1040). in 1. if you used Schedule of your taxon Form 1040 or 1040-5R, in 16 regure that without Schedule before completing this Inese instructions) 11 AMT Grade 10 from inzercenter one here and on schedule Form1040). In For Paperwork Reduction Act Notice, see your tax return instructions 10 10 11 Cat NO 1 EA  John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,400, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,400. John also does some Web design work on the side and reported revenues of $4.400 and associated expenses of $950. The Fergusons received $880 in qualified dividends and a $220 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 the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10. Tax Rate Schedule. Dividends and Capital Gains Tax Rates 2021 AMT exemption for reference, The Fergusons reported making the following payments during the year.  State income taxes of $4,500. Federal tax withholding of $21,000,  Alimony payments to John's former wife of $10,200 (divorced 12/31/2014).  Child support payments for John's child with his former wife of $4140.  $12,240 of real property taxes  Sandy was reimbursed $620 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.  $14,400 interest on their home mortgage ($400,000 acquisition debt). $3,060 interest on a $40,800 home-equity loan. They used the loan to pay for a family vacation and new car. $15,200 cash charitable contributions to qualified charities,  Donation of used furniture to Goodwill. The furniture had a fair market value of $440 and cost $2,200. . Complete pages 1 and 2. Schedule 1. Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. John and Sandy Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: John (DOB 11/07/1970): 111-11-1111 Sandy (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Form 1040 Department of the Treasury--Internal Revenue Service (9) U.S. Individual Income Tax Return 2020 OMB No 1545-0074 IRS Use Only --Do not write or staple in this space Fling Status Single Marted filling jordy Morted in separately (MP3) Head of household Qualifying widown low) Check only you checked MES box, enter the name of your spouse. If you checked the HOH Or Worter the child's name the qualifying person is ne box achd but not your dependent Your first name and middel Last name Your social security number frame and midten Last name Spouse's social security number Home resumber and you have a PO box, sections Apt no Presidential Election Campaign Clown oport you have for a compete State 2P code Check here if you or your use ingly want to go to the finding a box below will not chang your exorrard Foreign country Foreign proccounty Foreign postal You Spouse At any time during 2020. did you receive soll send exchange or otherwise soguire any financial interest in any virtual currency? Yes Ne Standard Someone can can You as een Y as a renderit Deduction Soutener you were we Againese You www.bombefore Jury 21 Are Spouse Was bombefore a 256 Dependents structions He to you Version Cho Credo depende mont U one and the BED DOO (2) Social Security number Q Relationship to you the instructions (1) Fistiane Child tax credit Credit for other dependents Last name 1 25 20 30 45 da a 33 Taxatierest Ordinary dividende Taxable amount Taxable amount b Taxable amount 50 50 2 1 Wages sanes, tips, el Altach Form 2 2a Taxempt interest Sa Qualified dividende H HA 4why theo Sa Pensions and artis 6a Sol security benefits 7 Capital gain or loss) Amount som income from Schedule 1, line Add in 1, 2, 3, 4, 5, , 7, and 8. This is your owncome 10 Adjustments to income From Schedule 1, the 22 Charitate contributions if you take the standard duction Struction Addines 10 at 10. There are you starts to more 11 Stradline 10 from line. This is you do nome 12 Standard desaction or med deductions (trom Schedule 13 led business income deduction Attach Fon 305 FormA 14 Adres 12 and 13 15 Tema Sutractine 14 tom interesse 100 100 100 11 12 13 14 15 Form 1040 (2020) o 4972 16 17 18 19 20 21 22 23 24 + 25 250 16 Tax (sco instructions) Amount 8814 17 Amount from Schedule 2. Ine 3. 18 Add lines 16 and 17 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3, line 7 21 Addnes 19 and 20 22 Subtractine 21 from line 18. If rere or less entero 23 Other taxes, including weit employment tax, from Schedule 2. ine 10 24 Add Ines 22 and 23. This is your total tax 25 Federal income tax withheld from Forms) W-2 Form(s) 1099 Other forms tree instruction Add line 25 through 256 24 2020 estimated tax payments and amount applied tom 2010 rotum 27 Eamed Income credit (EIC) 28 Additional child tax credit Attach Schedule 6812 29 American opportunity credit from Form 1869, line 3 30 Recovery rebate credit See Instructions 31 Amount from Schedule 3. line 13 32 Addnes 27 through 31. These are your total other payments and refundable credits 33 Add lines 250, 26, and 32. These are your total payments 34 If line 33 is more than ine 24, subtract line 24 from line 33. This is the amount you overpad 35a Amount of line 34 you want refunded to you 250 250 20 27 28 29 30 31 32 33 34 m 35 NAS overpan 35a 37 to pay 34 ne more than line 24 sofractie 20 min 350 Amount of line 34 you want refunded to you: 12.408) Routing number Fe Type Checking Savings Account number 30 Amount of ine 34 you want applied to your 2021 estimated tax 37 Subtract inn 33 trom in 24. This is the amount you owe now Note: Schedule Hand Schedule Se flers, Ino 37 may not represent all of the taxes you owe tot 2020. See Schedule 3, ino 120, and its instructions for details 38 Estimated tax penalty (see instruction) Do you want to low another person to discuss the retum win the IR? So niction You Complete below NO Designeo name Phone Personal identification no number (PIN) Under penalties qui declare that I have examined the retum and accompanying schedules and statements, and to the best of my knowledge and betet, try to correct, and complete. Declaration of prepare fother than taxpayer) is based on information of which proper has any knowledge Your signature Date Your occupation WIR sent you an identity Protection PIN, enter it here ) Spouse's signature. It a joint retum, both must sign Date the IRS Set your spousen Sponses occupation Identity Protection PIN, enter it here (int) Phone no Emal address Preparer's name Preparer's signature Dale PTIN Check it O Self-employed Phone no Firm's address Firm's EN Firm's name OMB No. 1545-0074 SCHEDULE 1 (Form 1040) Additional Income and Adjustments to Income 2020 Department of the Treasury Internal Revenue Service Name() shown on Form 1040, 1040 SR or 1040-NR Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.lrs.gov/Form1040 for instructions and the latest Information Attachment Sequence No. 01 Your social security number Part 1 1 1 2a 2a 3 Additional Income Taxable refunds, credits, or offsets of state and local come to Alimony received Date of original divorce or separation agreement (see instructions) Business income or dos). Attach Schedule C Other gains or (es) Anach Form 4707 Hentaire ette noyatok, partnerships, corporations, busts, etc. Attach Schedule Fam income (10) Altach Schedule Unemployment compensation Ohrome. Amount 4 4 5 5 6 6 7 7 . Part II 10 10 Combine Ines thrown that there and on Form 1040, s 1. or 1000 NR, the Adjustments to Income Educator expenses Certain business expenses of reserve performing artists, and to basis government of Attach Form 2100 Health savings account deduction Altach Form 689 Moving expers for members of the Armed Forces Attach Form 3003 11 12 12 13 13 4 5 5 Other gains or posses) Altach Form 4797 Rental state, royalties, partnerships, corporations, trusts, etc. Altach Schedule Farm income or loss Altach Schedule Unemployment compensation Other income. Amount 6 7 7 9 Part II 10 10 11 11 12 12 13 13 14 14 15 15 16 Combine Ines 1rough 8 Enter here and on Form 1040 1040 SR or 1040-NR, Iine 8 Adjustments to Income Educator expenses Certain business expenses of reservats performing artists and foo-basis government officials. Attach Form 2106 Heath savings account deduction Anach Form te Moving expenses for members of the Armed Forces. Attach For 3903 Drouet ble part of employment tax Attach Schedule SE Self-employed SEP SIMPLE, and qualified plans Sof-employed health insurance deduction Penalty on early withdrawal of savings Almony paid Recipes SSN Date of original divorce or separation agreement (se instructions) IRA deduction Studention est deduction Tuition and foes deduction Ansch Form 2017 Add Ines 10 through 21. These are your adjustments to income Enter here and en Form 1040 1040-5R or 1040 NR in 100 10 17 17 18 180 b 19 19 20 20 21 21 22 22 Additional Taxes OMB No. 1545-0074 SCHEDULE 2 (Form 1040) Department of the Treasury Internal Revenue Service Name() shown on Form 1040 1040-SR or 1040-NR 2020 Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest Information Attachment Sequence No. 02 Your social security number + 2 3 4 Part I Tax 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Fom 8962 3 Addlines 1 and 2 Enter here and on Form 1040 1040-SR, or 1040-NR, line 17 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 5 Unreported social security and Medicare tax from Form 4137 8919 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Altach Form 5320 if required 7a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 8 Taxes from Form 8050 b Form 8960 Instructions, enter code(s) 9 Section 965 net tax liability Installment from Form 965-A 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 23. or Form 1040-NR line 231 For Paperwork Reduction Art Notice 5 6 7a 7b 8 10 Additional Credits and Payments SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Attach to Form 1040 or 1040-SR. Go to www.lrs.gowForm 1040 for instructions and the latest information OMB No 1545-0074 2020 Attachment Sequence No. 03 Your social security number 1 2 3 4 + 5 6 7 Part Nonrefundable Credits 1 Foreign tax credit. Attach Form 1116 if required 2 Credit for child and dependent care expenses. Altach Form 2441 3 Education credits from Form 8863, line 19 4 Retrement savings contributions credit. Attach Form 3880 5 Residential energy credits. Attach Form 5805 6 Other credits from Form 3800 8801 7 Addines 1 through 6. Enter hore and on Form 1040 1040-SR, or 1040-NR. line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 1962 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuets. Attach Form 4136 12 Other payments or refundable credits a Form 2439 b Qualified sick and tomily leave credits from Schedule(8) Hand Form(o) 7202 Health coverage tax credit from Form 8885 d Other Deferral for certain Schedule Hor SE flers (toe instructions) 8 9 10 11 120 125 120 120 120 Form 6251 Alternative Minimum Tax-Individuals OMB No 1545-0076 2020 Attachment Sequence No: 32 Your social security number 1 Department of the Treasury Go to www.insgeviform281 for instructions and the latest Information traal Revenue Service Attach to Form 1040 1040-SR. Br 1040 NR Name() shown on Form 1040 1040 SR. 1040 NA John and Sandy Ferguson Part 1 Alternative Minimum Taxable income (See Instructions for how to complete each line) Enter the amount from Form 1040 or 1040 SR in 15 more than o Fom 1040 or 1040 SR Ine 15, is er wurde 12 and 13 of Form 1040 or 1040 Stromine 11 of Form 1010 or 1040-R and enter the root here than or enter a gave amount) ? Ning schedule Afform 1010) enter the from Sele Aine were the amount om Form 1040 1040 Rina 12 Tax round from Schedule 1 Form 1040),intorn Investment reste diference between regular and AMT  Depletion erence between tax and AMT)  Netenting to deduction from here 1 (Form 100), ne rerne poulie amount + Alemave tax nel Operating is deduction o interest from pod private activity bonds to the Oled matbuss lock struction Bereof noentivo lock option excess of income over agar tax income 1 Estats and trust anottom SchedForm 1041 12. code Disposition of property ofference between AMT and garagona) Depreciation one placed in service wherrence between regard AMT) m Passive activities forence between AMT and regular lex nome or loss) Loon (forence between AMT and red tax income aro)  Creion costo diference between regiw tax and AMT) Long-term contracts (AMT and regular tax income 4 Mining costs (ference between regia lax and AMT) Rearch and experimental considerence between regular tar and AMT 222*26*RARA 282 2m Research and experimental costs (difference between regular tax and AMT) $ Income from certain installment sales before January 1, 1907 Intangible criting costs preference 3 Other adjustments, including income based related adjustments 4 Ahernative minimum taxable income. Combine finest through all married fingreparately and line 4 is more than $745.200, soe instruction) 21 24 21 } Part Alternative Minimum Tax (AMT) Exemption IF your filing statusi AND line 4 is not over... THEN enter on line 5... Single or head of household 516,4003 72.900 Maried ting jointly or qualityna widower 1,036,000 113.400 Married ting separately 518.400 56,700 If line in over the amount shown above for your fing alu, te instructions 6 Subiradene 5 tromlinedIf more than 2010. go to line 7. I zero or less entero- here and on line 76 and 11, and go to Ine 10  you are in Form 2555, e instructions for the amount to enter  you reported capital gain distributions directly on Form 1040 or 1040, In 7 you reported qualified and on Form 1040 1040-SR, in or you had again on both in 15 and 16 of Schedule D Form 1040) (segured for the AMT necessary.com Partill on the back and enter the amount om in 40 here . Al others in a $197.900 or less (596,960 or less married in separately, multiplyine by 20% (0.28). Otherwise mutyine by 28% (0.28) and Subtract $3.958 (51,979 med fingreparately from the result Otherwise, multiplyine by 2002) and Subtract 2.0 (1.048 marteding separately from the 0 Alternative minimum a foreign tax credencia Tentative minimumtax Surat line from ine 7 Add Form 1040 or 1040 SR, in 10 minus any lax from Yom (072) and schedule 2 om 1040), in Stadt Subtract from the rest any foreign tax credit from schedule om 1040). in 1. if you used Schedule of your taxon Form 1040 or 1040-5R, in 16 regure that without Schedule before completing this Inese instructions) 11 AMT Grade 10 from inzercenter one here and on schedule Form1040). In For Paperwork Reduction Act Notice, see your tax return instructions 10 10 11 Cat NO 1 EA

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,400, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,400. John also does some Web design work on the side and reported revenues of $4,400 and associated expenses of $950. The Fergusons received $880 in qualified dividends and a $220 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 the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule. Dividends and Capital Gains Tax Rates. 2021 AMT exemption for reference. The Fergusons reported making the following payments during the year: . State income taxes of $4,500. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,200 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,140. $12,240 of real property taxes. Sandy was reimbursed $620 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. $14,400 interest on their home mortgage ($400,000 acquisition debt). $3,060 interest on a $40,800 home-equity loan. They used the loan to pay for a family vacation and new car. $15,200 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $440 and cost $2,200.