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John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2018, John worked as a computer technician at a

John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2018, John worked as a computer technician at a local university earning a salary of $152,900, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,900. John also does some Web design work on the side and reported revenues of $4,900 and associated expenses of $1,200. The Fergusons received $980 in qualified dividends and a $245 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). UseExhibit 8-9,Tax Rate Schedule,Dividends and Capital Gains Tax Ratesfor reference.

The Fergusons reported making the following payments during the year:

  • State income taxes of $4,625. Federal tax withholding of $21,000.
  • Alimony payments to John's former wife of $10,450 (divorced in 2014).
  • Child support payments for John's child with his former wife of $4,190.
  • $12,290 of real property taxes.
  • Sandy was reimbursed $645 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.
  • $14,900 interest on their home mortgage ($400,000 acquisition debt).
  • $3,135 interest on a $41,800 home-equity loan. They used the loan to pay for a family vacation and new car.
  • $15,450 cash charitable contributions to qualified charities.
  • Donation of used furniture to Goodwill. The furniture had a fair market value of $490 and cost $2,450.

What is the Fergusons' 2018 federal income tax refund, including any self-employment tax and AMT, if applicable

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