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 2018, 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 their 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 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 Johns former wife of $10,000 (divorced in 2014).
• Child support payments for Johns 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 Samanthas 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.

  Complete pages 1 and 2 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: 123-45-6789

  Sandy: 361-23-8975

  Samantha : 333-44-5555

  (Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2018 tax rules regardless of year on tax form.)

  I need help filling out the tax forms. Do I need to fill out self employment tax if so what tax from line. I added up what i thought was a deduction from AGI and got 49k but that answer is incorrect.

ye2 181,000 12,200 800 800 1 Wages, salaries, tips, etc. Attach Form W-2 Attach Form(s) W-2. Also attach Form(s) W-2G and 2a Tax-exempt interest 1099-R if tax was 3a Qualified dividends withheld. 4a IRAs, pensions, and annuities 5a Social security benefits 5a Standard deduction for 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line Taxable interest Ordinary dividends b Taxable amount Taxable amount 4a b 0 181,800 49,000 (49,000) 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, Single or Married filing line 36, from line 6 separately, $12,000 | 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing jointly or Qualifying widow(er), 11 a Tax (see inst) (check if any from: 1. Form(s) 8814 2. Form 4972 $24,000 3. b Add any amount from Schedule 2 and check here D Head of household, 12 a Child tax credit/credit for other dependents 2,000 $18,000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter -- 14 Other taxes. Attach Schedule 4 If you checked any box 15 Total tax. Add lines 13 and 14 under Standard deduction, see 16 Federal income tax withheld from Forms W-2 and 1099 instructions 17 Refundable credits: a EIC (see inst.) O b Sch 8812 c Form 8863 0 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? See Db Routing number Dc Type: Checking Savings instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 21,000 22 Amount vou owe Subtract line 18 from line 15 For details on how to nav see instructions 21,000 19 21,000 21,000 21,000 202 Schedule 1 of Form 1040. OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 200 1-9b 10 11 12 3,250 SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 John and Sandy Ferguson Additional 1-9 b Reserved Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F 19 Unemployment compensation 20a Reserved 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 Adjustments 23 Educator expenses 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 26 Moving expenses for members of the armed forces. Attach Form 3903 26 14 15b 16b 17 18 19 21 22 3,450 20a Reserved 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 22 L 3,450 Adjustments 23 Educator expenses o Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 26 Moving expenses for members of the armed forces. Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient's SSN 10,000 32 IRA deduction 33 Student loan interest deduction 33 34 Reserved 35 Reserved 35 36 Add lines 23 through 35 36 10,000 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2018 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. 2019 McGraw-Hill Education. Required information 2018 SCHEDULE 3 Nonrefundable Credits OMB No 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information Attachment Sequence No. 03 Name(s) shown on Form 1040 Your social security number John and Sandy Ferguson Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required Credits 49 Credit for child and dependent care expenses. Attach Form 2441 49 50 Education credits from Form 8863, line 19 51 Retirement savings contributions credit. Attach Form 8880 52 Reserved 53 Residential energy credit. Attach Form 5695 54 Other credits from Form a 3800 b 8801 55 Add the amounts in the far right column. Enter here and include on Form 1040, line 12 600 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040) 2018 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. 2019 McGraw-Hill Education. Schedule 4 of Form 1040. 2018 58 SCHEDULE 4 Other Taxes OMB No. 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 04 Name(s) shown on Form 1040 Your social security number John and Sandy Ferguson 57 Self-employment tax. Attach Schedule SE 57 Other Taxes 58 Unreported social security and Medicare tax from: Forma 4137 8919 59 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required 59 60a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 60b 61 Health care: individual responsibility (see instructions) 62 Tax from: U a Form 8959 b Form 8960 c Instructions, enter code(s) 62 63 Section 965 net tax liability installment from Form 965-A 63 88 64 Add the amounts in the far right column. These are your total other taxes. Enter here and on Form 1040, line 14 64 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71481R Schedule 4 (Form 1040) 2018 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. 2019 McGraw-Hill Education. 60a 61 Schedule 3 6251 PG 1 > 5 109,400 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $718,800, see instructions.) Part II Alternative Minimum Tax (AMT) 5 Exemption. (If you were under age 24 at the end of 2018, see instructions.) IF your filing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household $ 500,000 $ 70,300 Married filing jointly or qualifying widow(er) 1,000,000 109,400 Married filing separately 500,000 54,700 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. If zero or less, enter-O- here and on lines 7, 9, and 11, and go to line 10 7. If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter. If you reported capital gain distributions directly on Schedule 1 (Form 1040), line 13; you reported qualified dividends on Form 1040, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part III on the back and enter the amount from line 40 here. . All others: If line 6 is $191,100 or less ($95,550 or less if married filing separately), multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,822 ($1.911 if married filing separately) from the result. 8 Alternative minimum tax foreign tax credit (see instructions) 9 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040, line 11a (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 46. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), line 48. If you used Schedule J to figure your tax on Form 1040, line 11a, refigure that tax without using Schedule J before completing this line (see instructions) 10 11 AMT. Subtract line 10 from line 9. IF zero or less, enter -- Enter here and on Schedule 2 (Form 1040), line 45 11 Form 6251 (2018) For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13600G 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. 2015 McGraw-Hill Education. ye2 181,000 12,200 800 800 1 Wages, salaries, tips, etc. Attach Form W-2 Attach Form(s) W-2. Also attach Form(s) W-2G and 2a Tax-exempt interest 1099-R if tax was 3a Qualified dividends withheld. 4a IRAs, pensions, and annuities 5a Social security benefits 5a Standard deduction for 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line Taxable interest Ordinary dividends b Taxable amount Taxable amount 4a b 0 181,800 49,000 (49,000) 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, Single or Married filing line 36, from line 6 separately, $12,000 | 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing jointly or Qualifying widow(er), 11 a Tax (see inst) (check if any from: 1. Form(s) 8814 2. Form 4972 $24,000 3. b Add any amount from Schedule 2 and check here D Head of household, 12 a Child tax credit/credit for other dependents 2,000 $18,000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter -- 14 Other taxes. Attach Schedule 4 If you checked any box 15 Total tax. Add lines 13 and 14 under Standard deduction, see 16 Federal income tax withheld from Forms W-2 and 1099 instructions 17 Refundable credits: a EIC (see inst.) O b Sch 8812 c Form 8863 0 Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? See Db Routing number Dc Type: Checking Savings instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 21,000 22 Amount vou owe Subtract line 18 from line 15 For details on how to nav see instructions 21,000 19 21,000 21,000 21,000 202 Schedule 1 of Form 1040. OMB No. 1545-0074 2018 Attachment Sequence No. 01 Your social security number 200 1-9b 10 11 12 3,250 SCHEDULE 1 Additional Income and Adjustments to Income (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Name(s) shown on Form 1040 John and Sandy Ferguson Additional 1-9 b Reserved Income 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or loss). Attach Schedule D if required. If not required, check here 14 Other gains or losses). Attach Form 4797 15a Reserved 16a Reserved 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Farm income or loss). Attach Schedule F 19 Unemployment compensation 20a Reserved 21 Other income. List type and amount 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 Adjustments 23 Educator expenses 23 to Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 26 Moving expenses for members of the armed forces. Attach Form 3903 26 14 15b 16b 17 18 19 21 22 3,450 20a Reserved 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column. If you don't have any adjustments to income, enter here and on Form 1040, line 6. Otherwise, go to line 23 22 L 3,450 Adjustments 23 Educator expenses o Income 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 25 Health savings account deduction. Attach Form 8889 26 Moving expenses for members of the armed forces. Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient's SSN 10,000 32 IRA deduction 33 Student loan interest deduction 33 34 Reserved 35 Reserved 35 36 Add lines 23 through 35 36 10,000 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71479F Schedule 1 (Form 1040) 2018 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. 2019 McGraw-Hill Education. Required information 2018 SCHEDULE 3 Nonrefundable Credits OMB No 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information Attachment Sequence No. 03 Name(s) shown on Form 1040 Your social security number John and Sandy Ferguson Nonrefundable 48 Foreign tax credit. Attach Form 1116 if required Credits 49 Credit for child and dependent care expenses. Attach Form 2441 49 50 Education credits from Form 8863, line 19 51 Retirement savings contributions credit. Attach Form 8880 52 Reserved 53 Residential energy credit. Attach Form 5695 54 Other credits from Form a 3800 b 8801 55 Add the amounts in the far right column. Enter here and include on Form 1040, line 12 600 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040) 2018 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. 2019 McGraw-Hill Education. Schedule 4 of Form 1040. 2018 58 SCHEDULE 4 Other Taxes OMB No. 1545-0074 (Form 1040) Department of the Treasury Attach to Form 1040. Internal Revenue Service Go to www.irs.gov/Form 1040 for instructions and the latest information. Attachment Sequence No. 04 Name(s) shown on Form 1040 Your social security number John and Sandy Ferguson 57 Self-employment tax. Attach Schedule SE 57 Other Taxes 58 Unreported social security and Medicare tax from: Forma 4137 8919 59 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required 59 60a Household employment taxes. Attach Schedule H b Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 60b 61 Health care: individual responsibility (see instructions) 62 Tax from: U a Form 8959 b Form 8960 c Instructions, enter code(s) 62 63 Section 965 net tax liability installment from Form 965-A 63 88 64 Add the amounts in the far right column. These are your total other taxes. Enter here and on Form 1040, line 14 64 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71481R Schedule 4 (Form 1040) 2018 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. 2019 McGraw-Hill Education. 60a 61 Schedule 3 6251 PG 1 > 5 109,400 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $718,800, see instructions.) Part II Alternative Minimum Tax (AMT) 5 Exemption. (If you were under age 24 at the end of 2018, see instructions.) IF your filing status is... AND line 4 is not over... THEN enter on line 5... Single or head of household $ 500,000 $ 70,300 Married filing jointly or qualifying widow(er) 1,000,000 109,400 Married filing separately 500,000 54,700 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. If zero or less, enter-O- here and on lines 7, 9, and 11, and go to line 10 7. If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter. If you reported capital gain distributions directly on Schedule 1 (Form 1040), line 13; you reported qualified dividends on Form 1040, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part III on the back and enter the amount from line 40 here. . All others: If line 6 is $191,100 or less ($95,550 or less if married filing separately), multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,822 ($1.911 if married filing separately) from the result. 8 Alternative minimum tax foreign tax credit (see instructions) 9 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040, line 11a (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 46. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), line 48. If you used Schedule J to figure your tax on Form 1040, line 11a, refigure that tax without using Schedule J before completing this line (see instructions) 10 11 AMT. Subtract line 10 from line 9. IF zero or less, enter -- Enter here and on Schedule 2 (Form 1040), line 45 11 Form 6251 (2018) For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13600G 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. 2015 McGraw-Hill Education