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 $152,000, 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 Ratesi 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 John's former wife of $10,000 (divorced in 2014). Child support payments for John's 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 Samantha's 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. a. What is the Fergusons' 2018 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.) Here are the dividend and capital gains brackets for 2018: Qualified Dividend & Cap Gain Tax Rate Single Filers Head of Joint Filers Household 0% $0- $38,600 $77,200 $0 $0-$51,700 15% $38,601 - $77,201- $51,701 $425,800 $479,000 $452,400 20% > $425,800 >$479,000 >$452,400 2018 Tax Rate Schedules Schadule X-Single Schedule 7-Hrad of Household Ir taxable income is over: But not over: The tax is If taxable income is over: But not over: The tax i 5 9.525 $ 38,700 82,500 $157,500 $200,000 9,525 S 38,700 S 82,500 $157,500 $200,000 $500,000 10% of trable income 5952.50 plas 12% ofthe excess over 39,525 $4,453.50 plus 22% of the eness over $30.700 $14,009.50 pla: 24% of the ances over $82,500 $32,009.50 plus 32% of tha emess over $157,500 $45,609.50 plus 35% of the excess over $200,000 $150,689.50 plus 37% of the aos" over $500,000 5 13.600 51,800 $ 82,500 $157,300 $200,000 $500,000 13,600 S 31.800 82,500 $157,500 $200,000 $500,000 10% of trable income $1.360 plus 12% ofthe excess over $15,000 $3.944 plus 22% ofthe excess over $51,800 $12,696 pla: 24% of tho access over $32,500 $30,69 pm 32% of the enses over $157,500 $44,296 plus 35% of the excess oer $200,000 $149,296 pla: 37% of tho aocan onr S00,000 Schadnls Y-1-Married Fhling Jontty or Qualifying Wow(er) Schedula Y-2-Married hiling Separately If taxable income is over: The tax is The tax i But not over 19,050 s 77,400 $165,000 $315,000 $400,000 $600,000 If taxable income is over: But not over 10% oftm able income $1.905 p 22 12% of the ersets o.er $1,000 $3.907 plus 22% of the excess over S77.400 $23,179 plas 24% of the excess over $165,000 so 4.179 plas32% ofthe excess o er S315.000 591.379 plus 35% of the escess over $400,000 $161,379 ptas 37% of the excess over 3600,000 5 9.325 $ 38,700 $$2,500 $157.500 $200.000 $300,000 $ 9525 S 58,700 S 82,500 $157,500 10% oft table income 5952 50 plas 12% of the emess over $9,525 $4,453.50 plus 22% or the ence" over S38.700 $14,069.50 plus 24% of the toes oner $82,500 $32,089.30 plus 32% of the ence" over $157,500 $45.689.50 plus 35% of the excess over S200.000 $80,609.50 plus 37% of the ence" over $300,000 5 19,050 $ 77.400 $315.000 $400,000 $600,000 $300,000 EXHIBIT 8-9 Child and Dependent Care Credit Percentage If AGI is then the percentage is 35% over but not over 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 15,000 17,000 19,000 21,000 23,000 25,000 27,000 29,000 31,000 33,000 35,000 37,000 39,000 41,000 43,000 No limit 34 32 30 29 28 27 26 25 24 23 20