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John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In 2014, John worked as a computer technician at

John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In 2014, John worked as a computer technician at a local university earning a salary of $50,000, 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 $5,000 and associated expenses of $1,000. The Fergusons received $900 in qualified dividends and a $300 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. Use Tax Rate Schedule for reference.

The Fergusons reported making the following payments during the year:

State income taxes of $4,900. Federal tax withholding of $4,600.
Alimony payments to Johns former wife of $10,000.
Child support payments for Johns child with his former wife of $5,700.
$3,100 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.

$3,200 to Kid Care day care center for Samanthas care while John and Sandy worked.
$11,000 interest on their home mortgage.

$3,000 interest on a $40,000 home-equity loan. They used the loan to pay for family vacation and new car.

$6,800 cash charitable contributions to qualified charities.

Donation of used furniture to Goodwill. The furniture had a fair market value of $600 and cost $2,500.

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