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 $154,500, and John worked part tir as a receptionist for a law firm earning a salary of $31,500. Sandy also does some Web design work on the side and reported revenues of $6,500 and associated expenses of $2,000. The Fergusons received $1,300 in qualified dividends and a $325 refund of their state income taxes. The Fergusons always itemize their deductions, get the fu 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 $5,025. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse of $11,250 (divorced 12/31/2014). Child support payments for Sandy's child with her former spouse of $4,350. $12,450 of real property taxes. John was reimbursed $725 for employee business expenses he incurred. He was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while Sandy and John worked. $16,500 interest on their home mortgage ($400,000 acquisition debt). $3,375 interest on a $45,000 home-equity loan. They used the loan to pay for a family vacation and new car. $16,250 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $650 and cost $3,250.

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 $154,500, and John worked part ti as a receptionist for a law firm earning a salary of $31,500. Sandy also does some Web design work on the side an reported revenues of $6,500 and associated expenses of $2,000. The Fergusons recelved $1,300 in qualified dividends and a $325 refund of their state income taxes. The Fergusons always itemize their deductions, get the ft benefit of deducting the entire amount of state income taxes paid, and their itemized deductions were well over th 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 $5,025. Federal tax withholding of $21,000. - Alimony payments to Sandy's former spouse of $11,250 (divorced 12/31/2014). - Child support payments for Sandy's child with her former spouse of $4,350. - $12,450 of real property taxes. - John was reimbursed $725 for employee business expenses he incurred. He was required to provide documentation for her expenses to her employer. - $3,600 to Kid Care day care center for Samantha's care while Sandy and John worked. - $16,500 interest on their home mortgage (\$400,000 acquisition debt). - $3,375 interest on a $45,000 home-equity loan. They used the loan to pay for a family vacation and new car. - $16,250 cash charitable contributions to qualified charities. - Donation of used furniture to Goodwill. The furniture had a fair market value of $650 and cost $3,250