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please help! thank you! Required information (The following information applies to the questions displayed below.] John and Sandy Ferguson got married eight years ago and
please help! thank you!
Required information (The following information applies to the questions displayed below.] John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, 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. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2021 AMT exemption 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 12/31/2014). 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' 2021 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.) John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, 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. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2021 AMT exemption 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 12/31/2014). 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. Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. John and Sandy Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: John (DOB 11/07/1970): 111-11-1111 Sandy (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 (Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2021 tax rules regardless of year on tax form.) 1040 for a couple Married Filing Jointly with one dependent. 1040 PG 1 1040 PG 2 Schedule 1 Schedule 2 Schedule 3 6251 PG 1 Form 1040 Page 1 and 2. Form 1040 Department of the TreasuryInternal Revenue Service (99) U.S. Individual Income Tax Return 2020 OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Single | Married filing jointly Married filing separately (MFS) | Head of household (HOH) Qualifying widow(er) (QW) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is a child but not your dependent. Filing Status Check only one box. Your first name and middle initial Last name Your social security number If joint return, spouse's first name and middle initial Spouse's social security number Last name Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Campaign City, town, or post office. If you have foreign address, also complete spaces below. State ZIP code Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. Foreign country name Foreign province/state/county Foreign postal code You Spouse Yes No At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? TE Required information Deduction Are blind Spouse: Was born before January 2, 1956 Is blind Age/Blindness Dependents Spouse itemizes on a separate return or you were a dual-status alien You: : Were born before January 2, 1956 (see instructions): ) (1) First name Last name (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions): Child tax credit Credit for other dependents 1 If more than four dependents, see instructions and check here 1 1 2a b Taxable interest. 2b Attach Sch. B if required. 3a b Ordinary dividends 3b 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 3a Qualified dividends 4a IRA distributions 5a Pensions and annuities 6a Social security benefits 4a 4h 5a b Taxable amount b b Taxable amount b Taxable amount 5b 66 7 Capital gain or loss). Amount. 7 8 Other income from Schedule 1, line 9 8 Standard Deduction for- Single or Married filing separately, 9 Add lines 1, 2, 3, 4, 5b, 6b, 7, and 8. This is your total income 9 0 $12,400 10 Adjustments to income: a From Schedule 1, line 22 10a b Charitable contributions if you take the standard deduction. See instruction 10b . Married filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see instructions. cAdd lines 10a and 10b. These are your total adjustments to income 10c 0 11 Subtract line 10c from line 9. This is your adjusted gross income 11 12 Standard deduction or itemized deductions (from Schedule A) 12 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 13 14 Add lines 12 and 13 14 olo! 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter-O- 15 ca EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is 50% $ 0 $125,000 125,000 127,000 49 127,000 48 129,000 131,000 129,000 47 183,000 21 181,000 183,000 400,000 400,000 20 402,000 19 402,000 18 404,000 436,000 434,000 2 436,000 438,000 1 0 438,000 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Services Necessary For Gainful Employment. !! Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 S 172,750 $ 329,850 $29,502 plus 24% of the excess over $172,750 S 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Tax Rates for Net Capital Gains and Qualified Dividends Head of Household Trusts and Estates Rate* 0% Married Filing Jointly $0-$80,800 $80,801 - $501,600 $501,601+ Married Filing Separately $0 - $40,400 $40,401 - $250.800 $250,801+ Taxable Income Single $0-$40,400 $40,401 - $445,850 $445,851+ 15% $0 - $54,100 $54,101 - $473,750 $473,751+ $0-$2,700 $2,701 - $13,250 $13,251+ 20% *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 EXHIBIT 8-5 2021 AMT Exemptions Filing Status Exemption Phase-Out Begins at This Level of AMTI Phase-Out Complete for This Level of AMTI Married filing jointly Married filing separately Head of household and single $114,600 57,300 73,600 $1,047,200 523,600 523,600 $1,505,600 752,800 818,000Step by Step Solution
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