Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information [The following information applies to the questions displayed below.] John and Sandy Ferguson got married eight years ago and have a seven-year-old
Required information [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 2021, John worked as a computer technician at a local university earning a salary of $153,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $30,000. John also does some Web design work on the side and reported revenues of $5,000 and associated expenses of $1,250. The Fergusons received $1,000 in qualified dividends and a $250 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 $4,650. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,500 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,200. $12,300 of real property taxes. . Sandy was reimbursed $650 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. . $15,000 interest on their home mortgage ($400,000 acquisition debt). $3,150 interest on a $42,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,500 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $500 and cost $2,500. 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 (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.)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started