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 $152,000, 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. 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 $4,400.

Federal tax withholding of $21,000.

Alimony payments to Johns former wife of $10,000 (divorced 12/31/2014).

Child support payments for Johns child with his former wife of $4,100.

$12,200 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.

$3,600 to Kid Care daycare center for Samanthas care while John and Sandy worked.

$14,000 interest on their home mortgage ($400,000 acquisition debt).

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

$15,000 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. W

hat is the Fergusons' 2021 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.)

****THIS IS FOR 2021

EXHIBIT 8-10 Child and Dependent Care Credit Percentage Then the percentage is 50% 49 48 If AGI is over $ 0 125,000 127,000 129,000 181,000 183,000 400,000 402,000 434,000 436,000 438,000 But not over $125,000 127,000 129,000 131,000 183,000 400,000 402,000 404,000 436,000 438,000 47 21 20 19 18 2 1 0 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 $ 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Tax Rates for Net Capital Gains and Qualified Dividends Rate* 0% Married Filing Jointly $0 - $80,800 $80,801 - $501,600 $501,601+ Married Filing Separately $0 - $40,400 $40,401 - $250,800 $250,801+ Taxable Income Single $0 - $40,400 $40,401 - $445,850 $445,851+ Head of Household $0 - $54,100 $54,101 - $473,750 $473,751+ Trusts and Estates $0 - $2,700 $2,701 - $13,250 $13,251+ 15% 20% EXHIBIT 8-5 2021 AMT Exemptions Filing Status Exemption Married filing jointly Married filing separately Head of household and single $114,600 57,300 73,600 Phase-Out Complete Phase-Out Begins at for This Level of This Level of AMTI AMTI $1,047,200 $1,505,600 523,600 752,800 523,600 818,000 EXHIBIT 8-10 Child and Dependent Care Credit Percentage Then the percentage is 50% 49 48 If AGI is over $ 0 125,000 127,000 129,000 181,000 183,000 400,000 402,000 434,000 436,000 438,000 But not over $125,000 127,000 129,000 131,000 183,000 400,000 402,000 404,000 436,000 438,000 47 21 20 19 18 2 1 0 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 $ 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Tax Rates for Net Capital Gains and Qualified Dividends Rate* 0% Married Filing Jointly $0 - $80,800 $80,801 - $501,600 $501,601+ Married Filing Separately $0 - $40,400 $40,401 - $250,800 $250,801+ Taxable Income Single $0 - $40,400 $40,401 - $445,850 $445,851+ Head of Household $0 - $54,100 $54,101 - $473,750 $473,751+ Trusts and Estates $0 - $2,700 $2,701 - $13,250 $13,251+ 15% 20% EXHIBIT 8-5 2021 AMT Exemptions Filing Status Exemption Married filing jointly Married filing separately Head of household and single $114,600 57,300 73,600 Phase-Out Complete Phase-Out Begins at for This Level of This Level of AMTI AMTI $1,047,200 $1,505,600 523,600 752,800 523,600 818,000