Sandy and John Ferguson got married eight years ago and have a seven$-$year$-$old daughter,

Samantha. They file a joint return. In $2023,$ Sandy worked as a computer technician at a local

university earning a salary of $$162,000,$ 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 always itemize their

deductions, and their itemized deductions were well over the standard deduction amount last year.

The Fergusons reported making the following payments during the year:

$($a$)$ Form $1040$ lines $15$ and $16$:

o Taxable income of $$135,165,$ which includes $$800$ of qualified dividends.

$($b$)$ Sch$\mathrm{.}2$ lines $1$ and $3[$AMT$]$:

o They paid state income taxes of $$4,400$ and $$12,200$ of real property taxes $($i$.$e$.,$ part

of itemized deduction$).$ No need to enter this in tax form. This information is useful

to determine the alternative minimum tax $($AMT$).$

o They received a $$200$ refund of their state income taxes. No need to enter this in

tax form. This information is useful to determine the alternative minimum tax

$($AMT$).$

$($c$)$ Sch$\mathrm{.}2$ line $4[$self$-$employment taxes$]$:

o Use the main information $($shown above$).$

$($d$)$ Sch$\mathrm{.}3$ line $2[$credit for child and dependent care expenses$]$:

o $$3,600$ to Kid Care daycare center for Samantha $($age $5)$s care while Sandy and

John worked.

$$ Sandy Ferguson$$s earned income $=$ $$165,001=[$Salary $$162,000+$ Net

earnings from self$-$employment $$3,001(=$ $$3,250(=$ $$4,000-$ $$750)\backslash$times

$92\mathrm{.}35\%).$

$$ Applicable percentage is $20\%.$

$($e$)$ Form $1040$ line $19[$child tax credit or credit for other dependents$]$:

o Assume that their AGI is $$185,206($no need to enter this in tax form. This AGI

information is useful to determine child tax credit$).$

$($f$)$ Form $1040$ line $25$a:

o Federal income tax withholding of $$21,000.$

$($g$)$ Assume no underpayment penalty.

Required: What are the Fergusons$2023$ federal income taxes payable or refund, including any

self$-$employment tax and alternative minimum tax $($AMT$),$ if applicable? Complete $(1)$ Form $1040$

$($starting from line $15$taxable income$),(2)$ Sch$.2,$ and $(3)$ Sch$.3$ for Sandy and John.