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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 $152,800, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,800. John also does some Web design work on the side and reported revenues of $4,800 and associated expenses of $1,150. The Fergusons received $960 in qualified dividends and a $240 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 $4,600. Federal tax withholding of $21,000.
• Alimony payments to Johns former wife of $10,400 (divorced 12/31/2014).
• Child support payments for Johns child with his former wife of $4,180.
• $12,280 of real property taxes.
• Sandy was reimbursed $640 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.
• $14,800 interest on their home mortgage ($400,000 acquisition debt).
• $3,120 interest on a $41,600 home-equity loan. They used the loan to pay for a family vacation and new car.
• $15,400 cash charitable contributions to qualified charities.
• Donation of used furniture to Goodwill. The furniture had a fair market value of $480 and cost $2,400.

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

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 OnlyDo not write or staple in this space.
Filing Status	Singlecheckbox unchecked1 of 8	Married filing jointlycheckbox unchecked2 of 8	Married filing separately (MFS)checkbox unchecked3 of 8		Head of household (HOH)checkbox unchecked5 of 8		Qualifying widow(er) (QW)checkbox unchecked7 of 8
Check only one box.	If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QW box, enter the childs name if the qualifying person is a child but not your dependent.
Your first name and middle initial			Last name				Your social security number
If joint return, spouses first name and middle initial			Last name				Spouses social security number
Home address (number and street). If you have a P.O. box, see instructions.						Apt. no.	Presidential Election Campaign
							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.
City, town, or post office. If you have a foreign address, also complete spaces below.					State	ZIP code
Foreign country name		Foreign province/state/county			Foreign postal code
							Youcheckbox unchecked1 of 4	Spousecheckbox unchecked2 of 4
At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?							Yescheckbox unchecked3 of 4	Nocheckbox unchecked4 of 4
Standard Deduction	Someone can claim:	You as a dependentcheckbox unchecked1 of 9		Your spouse as a dependentcheckbox unchecked3 of 9
	Spouse itemizes on a separate return or you were a dual-status aliencheckbox unchecked6 of 9
Age/Blindness	You:	Were born before January 2, 1956checkbox unchecked1 of 3		Are blindcheckbox unchecked3 of 3	Spouse:	Was born before January 2, 1956checkbox unchecked1 of 3		Is blindcheckbox unchecked3 of 3
Dependents	(see instructions):		(2) Social security number		(3) Relationship to you		(4) if qualifies for (see instructions):
If more than four dependents, see instructions and check herecheckbox unchecked1 of 5	(1) First name	Last name					Child tax credit	Credit for other dependents
							checkbox unchecked1 of 8	checkbox unchecked2 of 8
							checkbox unchecked3 of 8	checkbox unchecked4 of 8
							checkbox unchecked5 of 8	checkbox unchecked6 of 8
							checkbox unchecked7 of 8	checkbox unchecked8 of 8
	1 Wages, salaries, tips, etc. Attach Form(s) W-2						1
Attach Sch. B if required.	2a Tax-exempt interest		2a		b Taxable interest.		2b
	3a Qualified dividends		3a		b Ordinary dividends.		3b
	4a IRA distributions		4a		b Taxable amount		4b
	5a Pensions and annuities		5a		b Taxable amount		5b
Standard Deduction for Single or Married filing separately, $12,400 Married filing jointly or Qualifying widow(er), $24,800 Head of household, $18,650 If you checked any box under Standard Deduction, see instructions.	6a Social security benefits		6a		b Taxable amount		6b
	7 Capital gain or (loss). Amount.					checkbox unchecked1 of 1	7
	8 Other income from Schedule 1, line 9						8
	9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income						9
	10 Adjustments to income:
	a From Schedule 1, line 22				10a
	b Charitable contributions if you take the standard deduction. See instruction				10b
	c Add lines 10a and 10b. These are your total adjustments to income						10c
	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
	15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0-						15
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.						Cat. No. 11320B		Form 1040 (2020)
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. 2021 McGraw-Hill Education.

(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.)

Form 1040 Page 1 and 2.