Required information Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Static) {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 2020. 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 thelr 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, 2020 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. Allmony 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. . Fom6251 Alternative Minimum Tax-Individuals OMB No. 1545-0014 2019 Department of the Try Go to www.irs.gov/Form6251 for instructions and the latest information. Altacht In Revit Service Altach to Form 1040, 1040-SR, or 1040-NR. S. 32 Narehown in Form 1046, 1040-SR, or 1040-NR Your social security number r 5 Part I Alternative Minimum Taxable income See instructions for how to complete each line.) 1 Enter the amount trom Fon 1040 or 1040-SR, line 11b, If more than zero. If Form 1040 or 1040-SA, Ine 11b, is zero, subtract lines 9 and 10 of Form 1040 or 1040-SR from line &b of Fom 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.) 1 2a If filing Schedule A Form 1040 or 1040-SR), enter the taxes from Schedule A line 7; otherwise, enter the amount from Form 1040 of 1040-SR, line 9. 2a b Tax refund from Schedule 1 (Form 1040 or 1040-SR. ine 1 or line 8 2b Investment interest expense difference between regular tax and AMT) 20 d Depletion (difference between regular tax and AMT) 2d e Net operating loss deduction from Schedule 1 (Form 1040 ar 1040-SR), line B. Enter as a positive amount 2e + Alternative tax net operating loss deduction 21 Interest from specified private activity bonds exempt from the regular tax 29 h Qualified small business stock, se instructions 2h Exercise of incentive stock options (excess of AMT income over regular fax income) 21 i Estates and trusts (amount from Schedule K-1 Form 1041) box 12, code A 2 k Disposition of property (difference between AMT and regular tax gain or loss) 2k | Depreciation on assets placed in service after 1986 difference between regular tax and AMT). 21 m Passive activities (difference between AMT and regular tax income or loss 2m n Loss limitations difference between AMT and regular tax income or loss o Circulation costs (difference between regular tax and AMT). 20 P Long-term contracts (difference between AMT and regular tax income 20 4 Mining costs (difference between regular tax and AMT) 2g Research and experimental costs (difference between regular fax and AMT) 2r Income from certain installment sales before January 1, 1987 25 Intangible dniling costs preference 3 Other adjustments, including income-based related adjustments 3 4 Alternative minimum taxable income. Combine lines 1 through 3. If married fling separately and line 4 is more than $793.700. see instructions. 4 Part II Alternative Minimum Tax (AMT) Exemption if you were under age 24 at the end of 2019. see instructions.) IF your fing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household $ 510,300 $ 71,700 Married ting joindy or qualitying widower) 1,020,000 111,700 Married sing separately 510,300 55,850 If line 4 is over the amount shown above for your filing status, see instructions. 6 Subtract line 5 from line 4. If more than zero, go to line 7. I zero or less, enter-O- here and onlines 7. 9. and 11. and go to line 10. 7 . If you are filing Form 2555, see instructions for the amount to enter. . If you reported capital gain distributions directly on Form 1040 or 1040-SR line 6; you reported qualified dividends on Form 1040 or 1040-SR Ine 3 or you had a gain on both lines 15 and T6 of Schedule D Form 1040 or 1040-SR) (as refigured for the AMT, if necessaryl. complete Part I on the back and enter the amount from line 40 here. . All others: If line is $194,800 or less ($97.400 or less if married filing separately), multiply line 6 by 26% (0.26. Otherwise, multiply line 6 by 28% (0.28) and subtract $3,896 $1,948 it married filing separately) from the result. 8 Alternative minimum tax foreign tax credit (see instructions! 9 Tentative minimum tax. Subtract line from line 7 10 Add Form 1040 or 1040-SR line 12a (minus any tax from Form 4972), and Schedule 2 Fom 1040 or 1040-SR), Ine 2. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040 or 1040-SR. line 1. you used Schedule J to figure your tax on Form 1040 or 1040-SR, line 12a, refigure that tax without using Schedule J before completing this line see instructions 10 11 AMT. Subtract line 10 from ine 9. If zero or less, enter-O-. Enter here and an Schedule 2 (Form 1040 or 1040 SR), line 1 11 For Paperwork Reduction Act Notice, see your tax return instructions. Cal No. 136000 Form 6251 2019 inductions 12 13 14 15 16 17 18 19 12 Enter the amount trom Form 6251, line 6. If you are filing Form 2585, enter the amount from line 3 of the worksheet in the instructions for line 7 13 Enter the amount from line 6 of the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Forms 1040 and 1040-SR or the amount from line 13 of the Schedule D Tax Worksheet in the Instructions for Schedule D (Form 1040 or 1040-SR), whichever applies (as retigured for the AMT, necessary) (see instructions). If you are filing Form 2585, see instructions for the amount to enter 14 Enter the amount from Schedule D Form 1040 or 1040-SR), line 19 (as refigured for the AMT, if necessary) see instructions. If you are filing Form 2565, see instructions for the amount to enter 15 If you did not complete a Schedule D Tax Worksheet for the regular tax or the AMT, enter the amount from line 13. Otherwise, add lines 13 and 14, and enter the smaller of that result or the amount from line 10 of the Schedule D Tax Worksheet (as refigured for the AMT, if necessary). If you are fiing Form 2566. see instructions for the amount to enter 16 Enter the smaller of line 12 or line 15 17 Subtract line 16 from line 12 18 If line 17 is $194.800 or less ($97,400 or less if married fing separately, multiply line 17 by 25% 0.25. Otherwise multiply line 17 by 28% (0.28) and subtract $3,996 ($1.948 it mamed fing separately from the result 19 Enter: $78,750 if married filing jointly or qualitying widower). $39,375 if single of married filing separately, or $82,750 if head of household 20 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Woricsheet or the amount from line 14 of the Schedule Tax Worksheet, whichever applies (as figured for the regular taxd. If you did not complete either worksheet for the regular tax, enter the amount from Form 1040 or 1040-SR, line 11b: it zero or loss, enter-O-. If you are filing Form 2555, see instructions for the amount to enter 21 Subtract line 20 from line 19. If zero or less, enter-O- 22 Enter the smaller of line 12 or line 13 Enter the smaller of Ene 21 or line 22. This amount is taced at 0% 24 Subtract line 23 trom line 22 25 Enter: $434,550 it single $244,425 if married fling separately $488,850 it married fling jointly or qualitying widower) . $461,700 if head of household 26 Enter the amount from line 21 27 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Worksheet or the amount from line 21 of the Schedule D Tax Worksheet, whichever applies (as figured for the regular taxd. If you did not complete either worksheet for the regular tax, enter the amount from Form 1040 or 1040-SR, line 116, it zero or less, enter-O-. If you are filing Form 2565, see instructions for the amount to enter 28 Add line 26 and line 27 29 Subtract line 28 from line 25. zore or less, enter-0- 30 Enter the smaller of line 24 or line 29 31 Multiply line 30 by 15% (0.15) 32 Add lines 23 and 20 lines 32 and 12 are the same, skip lines 33 through 37 and go to line 38. Otherwise, go to line 33. 33 Subtract line 32 from line 22 34 Multiply line 33 by 20% (0.20) I line 14 is zero or blank, skip lines 36 through 37 and go to line 38. Otherwise, go to line 36 35 Add lines 17.32, and 33 36 Subtract line 35 from line 12 37 Multiply line 38 by 25% (0.25) 38 Add lines 18, 31, 34, and 37 39 If line 12 is $194.800 or loss ($97.400 or less it married filing separately). multiply line 12 by 26% (0.26) Otherwise, multiply line 12 by 28% (0.28) and subtract $3,896 ($1,948 if married filing separately from the result 40 Enter the smaller of line 38 or line 39 here and on line 7. If you are filing Form 2566. do not enter this amount on line 7. Instead, enter it on line 4 of the worksheet in the instructions for line 7 20 21 22 23 24 } 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Form 6251 2019 Download the Tax Form and enter the required values in the appropriate fields. Required information Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO 8-5) (Static) {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 2020. 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 thelr 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, 2020 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. Allmony 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. . Fom6251 Alternative Minimum Tax-Individuals OMB No. 1545-0014 2019 Department of the Try Go to www.irs.gov/Form6251 for instructions and the latest information. Altacht In Revit Service Altach to Form 1040, 1040-SR, or 1040-NR. S. 32 Narehown in Form 1046, 1040-SR, or 1040-NR Your social security number r 5 Part I Alternative Minimum Taxable income See instructions for how to complete each line.) 1 Enter the amount trom Fon 1040 or 1040-SR, line 11b, If more than zero. If Form 1040 or 1040-SA, Ine 11b, is zero, subtract lines 9 and 10 of Form 1040 or 1040-SR from line &b of Fom 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.) 1 2a If filing Schedule A Form 1040 or 1040-SR), enter the taxes from Schedule A line 7; otherwise, enter the amount from Form 1040 of 1040-SR, line 9. 2a b Tax refund from Schedule 1 (Form 1040 or 1040-SR. ine 1 or line 8 2b Investment interest expense difference between regular tax and AMT) 20 d Depletion (difference between regular tax and AMT) 2d e Net operating loss deduction from Schedule 1 (Form 1040 ar 1040-SR), line B. Enter as a positive amount 2e + Alternative tax net operating loss deduction 21 Interest from specified private activity bonds exempt from the regular tax 29 h Qualified small business stock, se instructions 2h Exercise of incentive stock options (excess of AMT income over regular fax income) 21 i Estates and trusts (amount from Schedule K-1 Form 1041) box 12, code A 2 k Disposition of property (difference between AMT and regular tax gain or loss) 2k | Depreciation on assets placed in service after 1986 difference between regular tax and AMT). 21 m Passive activities (difference between AMT and regular tax income or loss 2m n Loss limitations difference between AMT and regular tax income or loss o Circulation costs (difference between regular tax and AMT). 20 P Long-term contracts (difference between AMT and regular tax income 20 4 Mining costs (difference between regular tax and AMT) 2g Research and experimental costs (difference between regular fax and AMT) 2r Income from certain installment sales before January 1, 1987 25 Intangible dniling costs preference 3 Other adjustments, including income-based related adjustments 3 4 Alternative minimum taxable income. Combine lines 1 through 3. If married fling separately and line 4 is more than $793.700. see instructions. 4 Part II Alternative Minimum Tax (AMT) Exemption if you were under age 24 at the end of 2019. see instructions.) IF your fing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household $ 510,300 $ 71,700 Married ting joindy or qualitying widower) 1,020,000 111,700 Married sing separately 510,300 55,850 If line 4 is over the amount shown above for your filing status, see instructions. 6 Subtract line 5 from line 4. If more than zero, go to line 7. I zero or less, enter-O- here and onlines 7. 9. and 11. and go to line 10. 7 . If you are filing Form 2555, see instructions for the amount to enter. . If you reported capital gain distributions directly on Form 1040 or 1040-SR line 6; you reported qualified dividends on Form 1040 or 1040-SR Ine 3 or you had a gain on both lines 15 and T6 of Schedule D Form 1040 or 1040-SR) (as refigured for the AMT, if necessaryl. complete Part I on the back and enter the amount from line 40 here. . All others: If line is $194,800 or less ($97.400 or less if married filing separately), multiply line 6 by 26% (0.26. Otherwise, multiply line 6 by 28% (0.28) and subtract $3,896 $1,948 it married filing separately) from the result. 8 Alternative minimum tax foreign tax credit (see instructions! 9 Tentative minimum tax. Subtract line from line 7 10 Add Form 1040 or 1040-SR line 12a (minus any tax from Form 4972), and Schedule 2 Fom 1040 or 1040-SR), Ine 2. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040 or 1040-SR. line 1. you used Schedule J to figure your tax on Form 1040 or 1040-SR, line 12a, refigure that tax without using Schedule J before completing this line see instructions 10 11 AMT. Subtract line 10 from ine 9. If zero or less, enter-O-. Enter here and an Schedule 2 (Form 1040 or 1040 SR), line 1 11 For Paperwork Reduction Act Notice, see your tax return instructions. Cal No. 136000 Form 6251 2019 inductions 12 13 14 15 16 17 18 19 12 Enter the amount trom Form 6251, line 6. If you are filing Form 2585, enter the amount from line 3 of the worksheet in the instructions for line 7 13 Enter the amount from line 6 of the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Forms 1040 and 1040-SR or the amount from line 13 of the Schedule D Tax Worksheet in the Instructions for Schedule D (Form 1040 or 1040-SR), whichever applies (as retigured for the AMT, necessary) (see instructions). If you are filing Form 2585, see instructions for the amount to enter 14 Enter the amount from Schedule D Form 1040 or 1040-SR), line 19 (as refigured for the AMT, if necessary) see instructions. If you are filing Form 2565, see instructions for the amount to enter 15 If you did not complete a Schedule D Tax Worksheet for the regular tax or the AMT, enter the amount from line 13. Otherwise, add lines 13 and 14, and enter the smaller of that result or the amount from line 10 of the Schedule D Tax Worksheet (as refigured for the AMT, if necessary). If you are fiing Form 2566. see instructions for the amount to enter 16 Enter the smaller of line 12 or line 15 17 Subtract line 16 from line 12 18 If line 17 is $194.800 or less ($97,400 or less if married fing separately, multiply line 17 by 25% 0.25. Otherwise multiply line 17 by 28% (0.28) and subtract $3,996 ($1.948 it mamed fing separately from the result 19 Enter: $78,750 if married filing jointly or qualitying widower). $39,375 if single of married filing separately, or $82,750 if head of household 20 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Woricsheet or the amount from line 14 of the Schedule Tax Worksheet, whichever applies (as figured for the regular taxd. If you did not complete either worksheet for the regular tax, enter the amount from Form 1040 or 1040-SR, line 11b: it zero or loss, enter-O-. If you are filing Form 2555, see instructions for the amount to enter 21 Subtract line 20 from line 19. If zero or less, enter-O- 22 Enter the smaller of line 12 or line 13 Enter the smaller of Ene 21 or line 22. This amount is taced at 0% 24 Subtract line 23 trom line 22 25 Enter: $434,550 it single $244,425 if married fling separately $488,850 it married fling jointly or qualitying widower) . $461,700 if head of household 26 Enter the amount from line 21 27 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Worksheet or the amount from line 21 of the Schedule D Tax Worksheet, whichever applies (as figured for the regular taxd. If you did not complete either worksheet for the regular tax, enter the amount from Form 1040 or 1040-SR, line 116, it zero or less, enter-O-. If you are filing Form 2565, see instructions for the amount to enter 28 Add line 26 and line 27 29 Subtract line 28 from line 25. zore or less, enter-0- 30 Enter the smaller of line 24 or line 29 31 Multiply line 30 by 15% (0.15) 32 Add lines 23 and 20 lines 32 and 12 are the same, skip lines 33 through 37 and go to line 38. Otherwise, go to line 33. 33 Subtract line 32 from line 22 34 Multiply line 33 by 20% (0.20) I line 14 is zero or blank, skip lines 36 through 37 and go to line 38. Otherwise, go to line 36 35 Add lines 17.32, and 33 36 Subtract line 35 from line 12 37 Multiply line 38 by 25% (0.25) 38 Add lines 18, 31, 34, and 37 39 If line 12 is $194.800 or loss ($97.400 or less it married filing separately). multiply line 12 by 26% (0.26) Otherwise, multiply line 12 by 28% (0.28) and subtract $3,896 ($1,948 if married filing separately from the result 40 Enter the smaller of line 38 or line 39 here and on line 7. If you are filing Form 2566. do not enter this amount on line 7. Instead, enter it on line 4 of the worksheet in the instructions for line 7 20 21 22 23 24 } 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Form 6251 2019 Download the Tax Form and enter the required values in the appropriate fields