Question
Required information Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) [The following information applies to the questions displayed below.] John
Required information
Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5)
[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 2019, John worked as a computer technician at a local university earning a salary of $153,100, and Sandy worked part-time as a receptionist for a law firm earning a salary of $30,100. John also does some Web design work on the side and reported revenues of $5,100 and associated expenses of $1,300. The Fergusons received $1,020 in qualified dividends and a $255 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 $4,675. Federal tax withholding of $21,000.
- Alimony payments to Johns former wife of $10,550 (divorced in 2014).
- Child support payments for Johns child with his former wife of $4,210.
- $12,310 of real property taxes.
- Sandy was reimbursed $655 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.
- $15,100 interest on their home mortgage ($400,000 acquisition debt).
- $3,165 interest on a $42,200 home-equity loan. They used the loan to pay for a family vacation and new car.
- $15,550 cash charitable contributions to qualified charities.
- Donation of used furniture to Goodwill. The furniture had a fair market value of $510 and cost $2,550.
Comprehensive Problem 8-85 Part a
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.)
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