John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2019, 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. John's business is not a specified business for the purpose of QBI deduction. 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 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. . . . Required information 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return Single Marted fing joy OMB No 1545-0074 Fiing status Your first name and initial 2018 Married fling wately Head of household IRS Use Only - Do not writer Qualifying widow Your social Entras Last name Your Standard deduction Someone can can you as a dependent If joint retum, Spouse's first name and initial You were born before January 2, 1954 You are blind Last name Spouse's social Enteras Spouse Standard deduction Someone can claim your spouses dependent Spouse is blind Home address number and street) If you have a PO box sections Spouse was bom before January 2. 1954 Spouse imces on a separate return of you were dual status alien Apl no Ful year heath Seeing Presidential Ele Ca town of post office state and ZIP code if you have a forestach Schedule 6 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Page 2 of Form 1040. Some information does not carry over from Page 1. Page 2 1 2b 10 Sb Form 1040 (2018) 1 Wages salaries, tips, etc. Attach Form(s) W-2 Attach Forms) W-2. Also attach Formis) W.26 and 2a Tax-exempt interest 2a b Taxable interest 1099 Rotax was 3a Qualified dividends Ja withheld Ordinary dividends 43 IRAs pensions, and annuities 4a Taxable amount Sa Social Security benefits Sa Taxable amount Standard deduction for 6 Total income. Add lines through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no aqustments to income, enter the amount from line 6 otherwise, subtract Schedule 1 - Single or Married fling line 36, from in separately $12.000 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) - Married filing jointly or 10 Taxable income Subtract lines 8 and 9 from ine 7 If zero or less enter-O. Qualifying widower) 11 a Tax(see inst) (check if any from 1 Forms) 5814 $24.000 2 Form 4972 8 7 9 10 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Schedule 1 of Form 1040. Additional Income and Adjustments to Income OMB No 1545-0074 SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Names) shown on Form 1040 2018 Attach to Form 1040 Go to www.irs gowForm 1040 for instructions and the latest Information Attachment Sequence No. 01 Your social security number Additional Income 1-96 10 11 12 1-9b Reserved 10 Taxatie refunds, credits or offsets of state and local income taxes 11 Alimony received 12 Business income or loss). Attach Schedule Cor CEZ 13 Capital gain or (04) Attach Schedule of required to required, check here 14 Other gains or losses) Attach For 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties partnerships corporation, trusts. Attach Schedule 18 Farm income of loss) Allach Schedule 13 14 156 16b 18 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Schedule 3 of Form 1040. Nonrefundable Credits OMB No 1545-0074 SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 2018 Attach to Form 1010 Go to www.irs gov/Form 1040 for instructions and the latest information Attachment Sequence No 03 Your social security number 48 49 50 Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required Credits 49 Credit for child and dependent care expenses Attach Form 2441 50 Education credits from Form 3063, line 19 51 Retirement savings contributions credit. Attach Form 3830 52 Reserved 53 Residential energy credit Altach Form 5695 S4 Other credits from Form 3000 0001 55 Add the amounts in the far right column Enter here and include on Form 1040, Ine 12 For Paperwork Reduction Act Notice, see your tax return instructions Cat No. 71480G 51 52 53 54 55 Schedule 3. (Form 1040) 2018 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 6251 PG 1 Schedule 4 of Form 1040. Other Taxes OMB No 1545.0074 SCHEDULE 4 [Form 1040) Department of the Treasury Internal Revenue Service Name() shown on Form 1040 Attach to Form 1040 Go to www.is gowForm 1040 for instructions and the latest information 2018 Attachment Sequence No. 04 Your social security number Other Taxes 57 58 57 Selemployment a Alach Schedule SE 50 Unported social security and Medicare tax rom Fom 402 8919 59 Additional tax on other qualified retirement plans and other tax lavored accounts Attach Form 5329 required 03 Household employment Altach Schedule Repayment of first-time homebuyer credit from Form 5405 Altach Form 5405 if required 51 Health care individual responsibility (see instructions 52 Tax from a Form 3959 b Form 8960 Instructions enter codes) 63 Section 165 nel tax labit instalment from Pom 965.A 54 Add the amounts in the far night column. There are your total other taxes Ethere and Familie 59 60a 600 61 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PM Form 6251 Alternative Minimum Tax-Individual OMB No 1545-0074 2018 Department of the Treasury Intemal Revenue Service (99) Names) shown on Form 1040 or Form 1040NR Go to www.is.govform6251 for instructions and the latest information Attach to Form 1040 of Form 1040NR Attachment Sequence No 32 Your SOCI security number Part Alternative Minimum Taxable income (See instructions for how to complete each line.) 1 Enter the amount from Form 1040, line 10, if more than Zero If Form 1040, line 10, 2010, subtractines 5 and 9 of Form 1040 from line 7 of Form 1040 and enter the result here. If less than zero, enter as a negative amount) 2a If filing Schedule A (Form 1040), enter the taxes from Schedule A line 7 otherwise, enter the amount from Form 1040 in 8 2a D Tax refund from Schedule 1 (Form 1040), line 10 or line 21 20 c Investment interest expense (difference between regular tax and AMT d Depletion (Difference between regular tax and AMT) 2d Het operating loss deduction from Schedule 1 Form 1040), line 21 Enter as a positive amount Alemative tax net operating loss deduction 21 9 Interest from specified private activity bonds exempt from the regular tax 20 Qualified small business stock see instructions 2h 1 John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2019, 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. John's business is not a specified business for the purpose of QBI deduction. 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 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. . . . Required information 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return Single Marted fing joy OMB No 1545-0074 Fiing status Your first name and initial 2018 Married fling wately Head of household IRS Use Only - Do not writer Qualifying widow Your social Entras Last name Your Standard deduction Someone can can you as a dependent If joint retum, Spouse's first name and initial You were born before January 2, 1954 You are blind Last name Spouse's social Enteras Spouse Standard deduction Someone can claim your spouses dependent Spouse is blind Home address number and street) If you have a PO box sections Spouse was bom before January 2. 1954 Spouse imces on a separate return of you were dual status alien Apl no Ful year heath Seeing Presidential Ele Ca town of post office state and ZIP code if you have a forestach Schedule 6 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Page 2 of Form 1040. Some information does not carry over from Page 1. Page 2 1 2b 10 Sb Form 1040 (2018) 1 Wages salaries, tips, etc. Attach Form(s) W-2 Attach Forms) W-2. Also attach Formis) W.26 and 2a Tax-exempt interest 2a b Taxable interest 1099 Rotax was 3a Qualified dividends Ja withheld Ordinary dividends 43 IRAs pensions, and annuities 4a Taxable amount Sa Social Security benefits Sa Taxable amount Standard deduction for 6 Total income. Add lines through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no aqustments to income, enter the amount from line 6 otherwise, subtract Schedule 1 - Single or Married fling line 36, from in separately $12.000 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) - Married filing jointly or 10 Taxable income Subtract lines 8 and 9 from ine 7 If zero or less enter-O. Qualifying widower) 11 a Tax(see inst) (check if any from 1 Forms) 5814 $24.000 2 Form 4972 8 7 9 10 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Schedule 1 of Form 1040. Additional Income and Adjustments to Income OMB No 1545-0074 SCHEDULE 1 (Form 1040) Department of the Treasury Internal Revenue Service Names) shown on Form 1040 2018 Attach to Form 1040 Go to www.irs gowForm 1040 for instructions and the latest Information Attachment Sequence No. 01 Your social security number Additional Income 1-96 10 11 12 1-9b Reserved 10 Taxatie refunds, credits or offsets of state and local income taxes 11 Alimony received 12 Business income or loss). Attach Schedule Cor CEZ 13 Capital gain or (04) Attach Schedule of required to required, check here 14 Other gains or losses) Attach For 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties partnerships corporation, trusts. Attach Schedule 18 Farm income of loss) Allach Schedule 13 14 156 16b 18 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PG 1 Schedule 3 of Form 1040. Nonrefundable Credits OMB No 1545-0074 SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 2018 Attach to Form 1010 Go to www.irs gov/Form 1040 for instructions and the latest information Attachment Sequence No 03 Your social security number 48 49 50 Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required Credits 49 Credit for child and dependent care expenses Attach Form 2441 50 Education credits from Form 3063, line 19 51 Retirement savings contributions credit. Attach Form 3830 52 Reserved 53 Residential energy credit Altach Form 5695 S4 Other credits from Form 3000 0001 55 Add the amounts in the far right column Enter here and include on Form 1040, Ine 12 For Paperwork Reduction Act Notice, see your tax return instructions Cat No. 71480G 51 52 53 54 55 Schedule 3. (Form 1040) 2018 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 6251 PG 1 Schedule 4 of Form 1040. Other Taxes OMB No 1545.0074 SCHEDULE 4 [Form 1040) Department of the Treasury Internal Revenue Service Name() shown on Form 1040 Attach to Form 1040 Go to www.is gowForm 1040 for instructions and the latest information 2018 Attachment Sequence No. 04 Your social security number Other Taxes 57 58 57 Selemployment a Alach Schedule SE 50 Unported social security and Medicare tax rom Fom 402 8919 59 Additional tax on other qualified retirement plans and other tax lavored accounts Attach Form 5329 required 03 Household employment Altach Schedule Repayment of first-time homebuyer credit from Form 5405 Altach Form 5405 if required 51 Health care individual responsibility (see instructions 52 Tax from a Form 3959 b Form 8960 Instructions enter codes) 63 Section 165 nel tax labit instalment from Pom 965.A 54 Add the amounts in the far night column. There are your total other taxes Ethere and Familie 59 60a 600 61 1040 PG 1 1040 PG 2 Schedule 1 Schedule 3 Schedule 4 6251 PM Form 6251 Alternative Minimum Tax-Individual OMB No 1545-0074 2018 Department of the Treasury Intemal Revenue Service (99) Names) shown on Form 1040 or Form 1040NR Go to www.is.govform6251 for instructions and the latest information Attach to Form 1040 of Form 1040NR Attachment Sequence No 32 Your SOCI security number Part Alternative Minimum Taxable income (See instructions for how to complete each line.) 1 Enter the amount from Form 1040, line 10, if more than Zero If Form 1040, line 10, 2010, subtractines 5 and 9 of Form 1040 from line 7 of Form 1040 and enter the result here. If less than zero, enter as a negative amount) 2a If filing Schedule A (Form 1040), enter the taxes from Schedule A line 7 otherwise, enter the amount from Form 1040 in 8 2a D Tax refund from Schedule 1 (Form 1040), line 10 or line 21 20 c Investment interest expense (difference between regular tax and AMT d Depletion (Difference between regular tax and AMT) 2d Het operating loss deduction from Schedule 1 Form 1040), line 21 Enter as a positive amount Alemative tax net operating loss deduction 21 9 Interest from specified private activity bonds exempt from the regular tax 20 Qualified small business stock see instructions 2h 1