John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter Samantha. In 2020, 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. 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 ($28,800). The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).

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 $8,000 (divorced in 2012).
• Child support payments for Johns child with his former wife $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 (Kids Care Daycare EIN 88-7773461).
• $14,000 interest on their home mortgage (acquisition debt of $400,000)
• $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for family vacation and new car.
• $15,000 cash charitable contributions to qualified charities (proper documentation exists).
• Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000.

Required: What is the Fergusons 2020 federal income taxes payable or refund? Complete pages 1 and 2 of Form 1040, Schedules 1, 2, and 3 of 1040, Schedule A, and Form 2441 for John and Sandy (you may use the 2019 form if need be, but be sure to use the 2020 limitations and amounts).

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,750 10% of taxable income $ 19,750 $ 80,250 $1,975 plus 12% of the excess over $19.750 $ 80,250 $171,050 $9,235 plus 22% of the excess over $80,250 $171,050 $326,600 $29,211 plus 24% of the excess over $171,050 $326,600 $414,700 S66,543 plus 32% of the excess over $326,600 $414,700 $622,050 $94.735 plus 35% of the excess over $414,700 $622,050 $167,307.50 plus 37% of the excess over $622,050