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. 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. a. What is the Fergusons' 2019 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.) EXHIBIT 8-9 Child and Dopondent Care Credit Porcentage If AGI is over But not over Then the percentage is $ 0 15.000 35% 15,000 17.000 SA 17,000 19.000 19.000 21.000 21,000 23.000 23,000 25.000 25,000 27.000 27,000 29.000 29,000 31.000 31,000 33.000 33,000 35.000 35,000 37.000 37,000 39.000 39.000 41.000 41,000 43,000 43,000 No limit Source: $216) 2019 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household The tax is: The tax is: If taxable income But not over: is over: If taxable income is But not over: over: $ 0 $ 9,700 10% of taxable income $ 0 $ 13,850 10% of taxable income $ 9,700 S 39,475 S 13.850 S 52.850 $970 plus 12% of the excess over $9,700 $1,355 plus 12% of the excess over $13,850 $ 39,475 S $4,200 $ 52,850 S $4,200 $4,543 plus 22% of the excess over S39,475 $6,065 plus 22% of the excess over S52.850 $ 54,200 $160,725 $ 84,200 $160,700 $14,382.50 plus 24% of the excess over $84.200 $12.962 plus 24% of the excess over $S4,200 $160,725 S204,100 $160,700 S204,100 $32,748.50 plus 32% of the excess over $160,725 $31,322 plus 32% of the excess over $160,700 S204.100 S510,300 $204,100 S510,300 $46.628.50 plus 35% of the excess over $204,100 $45,210 plus 35% of the excess over S204,100 S510,300 $510,300 $153,798.50 plus 37% of the excess over S510,300 $152,380 plus 37% of the excess over S510,300 Schedule Y-2-Married Flling Separately Schedule Y-1-Married Flling Jointly or Qualifying Widow(er) The tax is: But not over: The tax is: If taxable income But not over: is over: If taxable income is over: $ 0 $ 19,400 10% of taxable income $ 0 S 9,700 10% of taxable income $ 19,400 $ 78,950 $ 9,700 $ 39,475 $1,940 plus 12% of the excess over $19,400 $970 plus 12% of the excess over $9,700 $ 78,950 S168,400 $ 39,475 $ 54,200 $9,086 plus 22% of the excess over $78,950 $4,543 plus 22% of the excess over $39,475 $168.400 S321,450 S $4,200 $160,725 $28,765 plus 24% of the excess over $168,400 S14,382.50 plus 24% of the excess over $$4,200 S321,450 S408,250 $160,725 S204,100 $65,497 plus 32% of the excess over S321.450 $32,748.50 plus 32% of the excess over $160,725 S408,250 S612,350 $204,100 S306,175 $93.257 plus 35% of the excess over $408.250 $46,628.50 plus 35% of the excess over S204,100 $612,350 $306,175 $164,709.50 plus 37% of the excess over $612,350 SS2.354.75 plus 37% of the excess over S306,175 Tax Rates for Net Capital Gains and Qualified Dividends Rate* Taxable Income Single Married Filing Jointly Married Filing Separately Head of Household Trusts and Estates 0% $0 - $78,750 $0 - $39,375 $0-$39,375 $0 - $52,750 $0 - $2,650 15% $78,751 - $488,850 $39,376 - $244,425 $39,376 - $434,550 $52,751 - $461,700 $2,651 - $12,950 20% $488,851+ $244,426+ $434,551+ $461,701+ $12,951+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose). 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. 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. a. What is the Fergusons' 2019 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.) EXHIBIT 8-9 Child and Dopondent Care Credit Porcentage If AGI is over But not over Then the percentage is $ 0 15.000 35% 15,000 17.000 SA 17,000 19.000 19.000 21.000 21,000 23.000 23,000 25.000 25,000 27.000 27,000 29.000 29,000 31.000 31,000 33.000 33,000 35.000 35,000 37.000 37,000 39.000 39.000 41.000 41,000 43,000 43,000 No limit Source: $216) 2019 Tax Rate Schedules Individuals Schedule X-Single Schedule Z-Head of Household The tax is: The tax is: If taxable income But not over: is over: If taxable income is But not over: over: $ 0 $ 9,700 10% of taxable income $ 0 $ 13,850 10% of taxable income $ 9,700 S 39,475 S 13.850 S 52.850 $970 plus 12% of the excess over $9,700 $1,355 plus 12% of the excess over $13,850 $ 39,475 S $4,200 $ 52,850 S $4,200 $4,543 plus 22% of the excess over S39,475 $6,065 plus 22% of the excess over S52.850 $ 54,200 $160,725 $ 84,200 $160,700 $14,382.50 plus 24% of the excess over $84.200 $12.962 plus 24% of the excess over $S4,200 $160,725 S204,100 $160,700 S204,100 $32,748.50 plus 32% of the excess over $160,725 $31,322 plus 32% of the excess over $160,700 S204.100 S510,300 $204,100 S510,300 $46.628.50 plus 35% of the excess over $204,100 $45,210 plus 35% of the excess over S204,100 S510,300 $510,300 $153,798.50 plus 37% of the excess over S510,300 $152,380 plus 37% of the excess over S510,300 Schedule Y-2-Married Flling Separately Schedule Y-1-Married Flling Jointly or Qualifying Widow(er) The tax is: But not over: The tax is: If taxable income But not over: is over: If taxable income is over: $ 0 $ 19,400 10% of taxable income $ 0 S 9,700 10% of taxable income $ 19,400 $ 78,950 $ 9,700 $ 39,475 $1,940 plus 12% of the excess over $19,400 $970 plus 12% of the excess over $9,700 $ 78,950 S168,400 $ 39,475 $ 54,200 $9,086 plus 22% of the excess over $78,950 $4,543 plus 22% of the excess over $39,475 $168.400 S321,450 S $4,200 $160,725 $28,765 plus 24% of the excess over $168,400 S14,382.50 plus 24% of the excess over $$4,200 S321,450 S408,250 $160,725 S204,100 $65,497 plus 32% of the excess over S321.450 $32,748.50 plus 32% of the excess over $160,725 S408,250 S612,350 $204,100 S306,175 $93.257 plus 35% of the excess over $408.250 $46,628.50 plus 35% of the excess over S204,100 $612,350 $306,175 $164,709.50 plus 37% of the excess over $612,350 SS2.354.75 plus 37% of the excess over S306,175 Tax Rates for Net Capital Gains and Qualified Dividends Rate* Taxable Income Single Married Filing Jointly Married Filing Separately Head of Household Trusts and Estates 0% $0 - $78,750 $0 - $39,375 $0-$39,375 $0 - $52,750 $0 - $2,650 15% $78,751 - $488,850 $39,376 - $244,425 $39,376 - $434,550 $52,751 - $461,700 $2,651 - $12,950 20% $488,851+ $244,426+ $434,551+ $461,701+ $12,951+ *This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose)