! Required information [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, get the full benefit of deducting the entire amount of state income taxes paid, 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. a. 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. Answer is complete but not entirely correct. Tax refund $ 2,687 X EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is $ 0 $15,000 35% 15,000 17,000 34 17,000 19,000 33 19,000 21,000 32 21,000 23,000 31 23,000 25,000 30 25,000 27,000 29 27,000 29,000 28 29,000 31,000 27 31,000 33,000 26 33,000 35,000 25 35,000 37,000 24 37,000 39,000 23 39,000 41,000 22 41,000 43,000 21 43,000 No limit 20 Source: $21. 2022 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 539,900 $ 10,275 The tax is: 10% of taxable income $ 41,775 ||$1,027.50 plus 12% of the excess over $10,275 $ 89,075 $4,807.50 plus 22% of the excess over $41,775 $170,050 || $15,213.50 plus 24% of the excess over $89,075 $ 215,950 || $34,647.50 plus 32% of the excess over $170,050 $539,900 || $49,335.50 plus 35% of the excess over $215,950 $162,718 plus 37% of the excess over $539,900 - Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over:| $ 0 $ 20,550 $ 83,550 $ 178,150 $ 340,100 $ 431,900 $ 647,850 $ 20,550 $ 83,550 $ 178,150 $340,100 $ 431,900 $ 647,850 The tax is: 10% of taxable income $2,055 plus 12% of the excess over $20,550 $9,615 plus 22% of the excess over $83,550 $30,427 plus 24% of the excess over $178,150 $69,295 plus 32% of the excess over $340,100 $98,671 plus 35% of the excess over $431,900 $174,253.50 plus 37% of the excess over $647,850 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,650 $ 55,900 $ 89,050 $ 170,050 $ 215,950 $539,900 $ 14,650 $ 55,900 The tax is: 10% of taxable income $1,465 plus 12% of the excess over $14,650 $ 89,050 || $6,415 plus 22% of the excess over $55,900 $ 170,050 $13,708 plus 24% of the excess over $89,050 $ 215,950 || $33,148 plus 32% of the excess over $170,050 $539,900 || $47,836 plus 35% of the excess over $215,950 | $161,218.50 plus 37% of the excess over $539,900 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: $ 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 323,925 $ The tax is: 10,275 | 10% of taxable income $ 41,775 $ 89,075 $ 170,050 $ 215,950 $323,925 - $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $87,126.75 plus 37% of the excess over $323,925 Tax Rates for Net Capital Gains and Qualified Dividends Taxable Income Rate* 0% 15% Married Filing Jointly $0 - $83,350 $83,351 - $517,200 Married Filing Separately $0 - $41,675 Single Head of Household Trusts and Estates $41,676 $258,600 20% $517,201+ $258,601+ $0 - $41,675 $41,676 - $459,750 $459,751+ $0 - $55,800 $55,801 - $488,500 $488,501+ $0 - $2,800 $2,801 - $13,700 $13,701+ *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 last for this purpose). EXHIBIT 8-5 2022 AMT Exemptions Filing Status Exemption Phase-Out Begins at This Level of AMTI Married filing jointly $118,100 $1,079,800 Married filing separately 59,050 539,900 Phase-Out Complete for This Level of AMTI $1,552,200 776,100 Head of household and single 75,900 539,900 843,500