Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $152,000, 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).

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 in 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.

1)complete a worksheet for John and Sandy.

2)Complete pages 1 and 2 of Form 1040 and Form 6251 for John and Sandy.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Sampling And Risk Analysis In Auditing

Authors: Peter Jones

1st Edition

1138263214, 978-1138263215

More Books

Students also viewed these Accounting questions