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.] Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university, earning a salary of $152,000, and John worked part time as a receptionist for a law firm, earning a salary of $29,000. Sandy 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. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2022 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 Sandy's former spouse of $10,000 (divorced 12/31/2014). - Child support payments for Sandy's child with her former spouse of $4,100. - \$12,200 of real property taxes. - John was reimbursed $600 for employee business expenses he incurred. He was required to provide documentation for the expenses to his employer. - \$3,600 to Kid Care day care center for Samantha's care while Sandy and John 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. Comprehensive Problem 8-85 Part a (Static) 1. What is the Fergusons' 2022 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? Note: Round your intermediate computations to the nearest whole dollar amount. Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. Sandy and John Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Sandy (DOB 11/07/1970): 111-11-1111 John (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Note: The taxpayer should be provided in the sequence it is provided in the question data. Any rows should not be skipped while entering the dependents in 1040 PG 1. Ferguson's did not transact in any virtual currency. Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2022 tax rules regardless of year on tax form. Form 1040 Page 1 Go to WWw.irs.gov/Form1040 for instructions and the latest information. Form 1040(2021) ANY PURPOSE OTHER THAN EDUCATIONAL. ( ) 2022 McGraw-Hill Education. \begin{tabular}{|l|l|l|l|l|l|} \hline 1040 PG 1 & 1040 PG 2 & Schedule 1 & Schedule 2 & Schedule 3 & 6251 PG 1 \\ \hline \end{tabular} Form 1040 Schedule 1 ANY PURPOSE OTHER THAN EDUCATIONAL. () 2022 McGraw-Hill Education. 1040PG2 Schedule 2> \begin{tabular}{|l|c|} \hline 1040 PG 1 & 1040 PG 2 \\ \hline Form 1040 Schedule 2 \end{tabular} THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. () 2022 McGraw-Hill Education. 3> Form 1040 Schedule 3 Page 1 5 Exemption. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. (c) 2022 McGraw-Hill Education. 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.] Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university, earning a salary of $152,000, and John worked part time as a receptionist for a law firm, earning a salary of $29,000. Sandy 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. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2022 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 Sandy's former spouse of $10,000 (divorced 12/31/2014). - Child support payments for Sandy's child with her former spouse of $4,100. - \$12,200 of real property taxes. - John was reimbursed $600 for employee business expenses he incurred. He was required to provide documentation for the expenses to his employer. - \$3,600 to Kid Care day care center for Samantha's care while Sandy and John 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. Comprehensive Problem 8-85 Part a (Static) 1. What is the Fergusons' 2022 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? Note: Round your intermediate computations to the nearest whole dollar amount. Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. Sandy and John Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Sandy (DOB 11/07/1970): 111-11-1111 John (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Note: The taxpayer should be provided in the sequence it is provided in the question data. Any rows should not be skipped while entering the dependents in 1040 PG 1. Ferguson's did not transact in any virtual currency. Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2022 tax rules regardless of year on tax form. Form 1040 Page 1 Go to WWw.irs.gov/Form1040 for instructions and the latest information. Form 1040(2021) ANY PURPOSE OTHER THAN EDUCATIONAL. ( ) 2022 McGraw-Hill Education. \begin{tabular}{|l|l|l|l|l|l|} \hline 1040 PG 1 & 1040 PG 2 & Schedule 1 & Schedule 2 & Schedule 3 & 6251 PG 1 \\ \hline \end{tabular} Form 1040 Schedule 1 ANY PURPOSE OTHER THAN EDUCATIONAL. () 2022 McGraw-Hill Education. 1040PG2 Schedule 2> \begin{tabular}{|l|c|} \hline 1040 PG 1 & 1040 PG 2 \\ \hline Form 1040 Schedule 2 \end{tabular} THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. () 2022 McGraw-Hill Education. 3> Form 1040 Schedule 3 Page 1 5 Exemption. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. (c) 2022 McGraw-Hill Education