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 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 The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA) Use Exhibit 8 9, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2020 AMT exemption for reference 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 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 on 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 day care 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 Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy a What is the Fergusons' 2020 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 ) Tax payable 1040 for a couple Married Filing Jointly with two dependents b Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jul 19, 2024

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

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. 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. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA). Use Exhibit 8-9, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2020 AMT exemption for reference.

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

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 on 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 day care 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.

Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy.

a. What is the Fergusons' 2020 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.)

Tax payable

1040 for a couple Married Filing Jointly with two dependents.

b. Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy.