Question
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
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 $152,600, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,600. John also does some Web design work on the side and reported revenues of $4,600 and associated expenses of $1,050. The Fergusons received $920 in qualified dividends and a $230 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 $4,550. Federal tax withholding of $21,000. Alimony payments to Johns former wife of $10,300 (divorced in 2014). Child support payments for Johns child with his former wife of $4,160. $12,260 of real property taxes. Sandy was reimbursed $630 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. $14,600 interest on their home mortgage ($400,000 acquisition debt). $3,090 interest on a $41,200 home-equity loan. They used the loan to pay for a family vacation and new car. $15,300 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $460 and cost $2,300. Comprehensive Problem 8-85 Part b [MUST MANUALLY GRADE] Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." (Use 2019 tax rules regardless of year on form.)
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