Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sandy and John Ferguson got married eight years ago and have a seven - year - old daughter, Samantha. In 2 0 2 3 ,

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 $153,600, and John worked part time as a receptionist for a law firm, earning a salary of $30,600. Sandy also does some Web design work on the side and reported revenues of $5,600 and associated expenses of $1,550. The Fergusons received $1,120 in qualified dividends and a $280 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 $4,800. Federal tax withholding of $21,000.
Alimony payments to Sandy's former spouse of $10,800(divorced 1231?2014).
Child support payments for Sandy's child with her former spouse of $4,260.
$12,360 of real property taxes.
John was reimbursed $680 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 Samantha's care while Sandy and John worked.
$15,600 interest on their home mortgage ( $400,000 acquisition debt).
$3,240 interest on a $43,200 home-equity loan. They used the loan to pay for a family vacation and new car.
$15,800 cash charitable contributions to qualified charities.
Donation of used furniture to Goodwill. The furniture had a fair market value of $560 and cost $2,800.
Please find:
1. Itemized deduction
2.qualified business income deduction
3.adjusted gross income
4. Taxable income
5.deductible part of self-employment tax
7. Self employment tax
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Return Jahrgang 2018 Magazin Fur Transformation Und Turnaround

Authors: Stefanie Burgmaier, Hans Haarmeyer, Thorsten Garber

3rd Edition

365825601X, 9783658256012

More Books

Students also viewed these Accounting questions