Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, 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, 2023 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 Samanthas 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.

Complete pages 1 and 2 of Form 1040 for John and Sandy.

Note: Visit the IRS website and download Form 1040. Enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." Use 2023 tax rules regardless of the year on the form.

Tax Rates for Net Capital Gains and Qualified Dividends *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 8-10 2023 Earned Income Credit Table Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov. Individuals Srhodule X_Cinole