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, 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 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, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. Sandy and John Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Sandy (DOB 11/07/1970): 111-11-1111 John (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 Note: The taxpayer should be provided in the sequence it is provided in the question data. Any rows should not be skipped while entering the dependents in 1040 PG 1. Ferguson's did not transact in any virtual currency. Input all the values as positive numbers. Round your intermediate calculations and final answers to the nearest whole dollar. Use 2022 tax rules regardless of year on tax form.
EXHIBIT 8-5 2022 AMT Exemptions 2022 Tax Rate Schedules Individuals Sohodula V_Sinola Schedule Y-1-Married Filing Jointlv or Oualifving Widow(er) 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 qualified dividends are included in taxable income last for this purpose). EXHIBIT 8-10 Child and Dependent Care Credit Percentage For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040(2021) Form 1040 Page 2 Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Here belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. \begin{tabular}{l} Internal Revenue Service \\ \hline Name(s) shown on Form 1040, 1040-SR, or 1040-NR \\ \hline \end{tabular} 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. ( ) 2022 McGraw-Hill Education. Form 1040 Schedule 2 17 Other additional taxes: a Recapture of other credits. List type, form number, and amount b Recapture of federal mortgage subsidy. If you sold your home in 2021 , see instructions For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040) 2021 Form 6251 Page 1 \begin{tabular}{l} Form \\ Internal Revenue Service (99) \\ \hline Name(s) shown on Form 1040, 1040-SR, or 1040-NR \\ \hline \end{tabular} 6 Subtract line 5 from line 4. If more than zero, go to line 7 . If zero or less, enter 0 - here and on 6 lines 7,9 , and 11 , and go to line 10 7 - If you are filing Form 2555, see instructions for the amount to enter. - If you reported capital gain distributions directly on Form 1040 or 1040-SR, line 7; you reported qualified dividends on Form 1040 or 1040 SR, line 3 ; 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 $199,900 or less ( $99,950 or less if married filing separately), multiply line 6 by 26%(0.26). Otherwise, multiply line 6 by 28%(0.28) and subtract $3,998($1,999 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 or 1040-SR, line 16 (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 2. Subtract from the result Schedule 3 (Form 1040), line 1 and any negative amount reported on Form 8978 , line 14 (treated as a positive number). If zero or less, enter 0 - If you used Schedule J to figure your tax on Form 1040 or 1040-SR, line 16, refigure that tax without using Schedule J before completing this line (see instructions) 11 AMT. Subtract line 10 from line 9. If zero or less, enter -0-. Enter here and on Schedule 2 (Form 1040), line 1 For Paperwork Reduction Act Notice, see your tax return instructions. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORI THIS FORM FOR TAX FILING S OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. (c) 2022 A EXHIBIT 8-5 2022 AMT Exemptions 2022 Tax Rate Schedules Individuals Sohodula V_Sinola Schedule Y-1-Married Filing Jointlv or Oualifving Widow(er) 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 qualified dividends are included in taxable income last for this purpose). EXHIBIT 8-10 Child and Dependent Care Credit Percentage For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040(2021) Form 1040 Page 2 Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Here belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. \begin{tabular}{l} Internal Revenue Service \\ \hline Name(s) shown on Form 1040, 1040-SR, or 1040-NR \\ \hline \end{tabular} 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. ( ) 2022 McGraw-Hill Education. Form 1040 Schedule 2 17 Other additional taxes: a Recapture of other credits. List type, form number, and amount b Recapture of federal mortgage subsidy. If you sold your home in 2021 , see instructions For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71480G Schedule 3 (Form 1040) 2021 Form 6251 Page 1 \begin{tabular}{l} Form \\ Internal Revenue Service (99) \\ \hline Name(s) shown on Form 1040, 1040-SR, or 1040-NR \\ \hline \end{tabular} 6 Subtract line 5 from line 4. If more than zero, go to line 7 . If zero or less, enter 0 - here and on 6 lines 7,9 , and 11 , and go to line 10 7 - If you are filing Form 2555, see instructions for the amount to enter. - If you reported capital gain distributions directly on Form 1040 or 1040-SR, line 7; you reported qualified dividends on Form 1040 or 1040 SR, line 3 ; 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 $199,900 or less ( $99,950 or less if married filing separately), multiply line 6 by 26%(0.26). Otherwise, multiply line 6 by 28%(0.28) and subtract $3,998($1,999 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 or 1040-SR, line 16 (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 2. Subtract from the result Schedule 3 (Form 1040), line 1 and any negative amount reported on Form 8978 , line 14 (treated as a positive number). If zero or less, enter 0 - If you used Schedule J to figure your tax on Form 1040 or 1040-SR, line 16, refigure that tax without using Schedule J before completing this line (see instructions) 11 AMT. Subtract line 10 from line 9. If zero or less, enter -0-. Enter here and on Schedule 2 (Form 1040), line 1 For Paperwork Reduction Act Notice, see your tax return instructions. THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORI THIS FORM FOR TAX FILING S OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. (c) 2022 A
