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 $152,600, and John worked part time as a receptionist for a law firm earning a salary of $29,600. Sandy also does some Web design work on the side and reported revenues of $4,600 and associated expenses of $1,050. The Fergusons received $920 in qualified dividends and a $230 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, 2022 AMT exemption for reference.

The Fergusons reported making the following payments during the year:

• State income taxes of $4,550. Federal tax withholding of $21,000.
• Alimony payments to Sandy's former spouse of $10,300 (divorced 12/31/2014).
• Child support payments for Sandy's child with her former spouse of $4,160.
• $12,260 of real property taxes.
• John was reimbursed $630 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.
• $14,600 interest on their home mortgage ($400,000 acquisition debt).
• $3,090 interest on a $41,200 home-equity loan. They used the loan to pay for a family vacation and new car.
• $15,300 cash charitable contributions to qualified charities.
• Donation of used furniture to Goodwill. The furniture had a fair market value of $460 and cost $2,300.

a. What is the Fergusons' 2022 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?

EXHIBIT 8-10 Child and Dependent Care Credit Percentage

If AGI is over	But not over	Then the percentage is
$ 0	$15,000	35%
15,000	17,000	34
17,000	19,000	33
19,000	21,000	32
21,000	23,000	31
23,000	25,000	30
25,000	27,000	29
27,000	29,000	28
29,000	31,000	27
31,000	33,000	26
33,000	35,000	25
35,000	37,000	24
37,000	39,000	23
39,000	41,000	22
41,000	43,000	21
43,000	No limit	20

Tax Rates for Net Capital Gains and Qualified Dividends

Rate*	Taxable Income
Married Filing Jointly	Married Filing Separately	Single	Head of Household	Trusts and Estates
0%	$0 - $83,350	$0 - $41,675	$0 - $41,675	$0 - $55,800	$0 - $2,800
15%	$83,351 - $517,200	$41,676 - $258,600	$41,676 - $459,750	$55,801 - $488,500	$2,801 - $13,700
20%	$517,201+	$258,601+	$459,751+	$488,501+	$13,701+

EXHIBIT 8-5 2022 AMT Exemptions

Filing Status	Exemption	Phase-Out Begins at This Level of AMTI	Phase-Out Complete for This Level of AMTI
Married filing jointly	$118,100	$1,079,800	$1,552,200
Married filing separately	59,050	539,900	776,100
Head of household and single	75,900	539,900	843,500

2022 Tax Rate Schedules

IndividualsSchedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 10,275	10% of taxable income
$ 10,275	$ 41,775	$1,027.50 plus 12% of the excess over $10,275
$ 41,775	$ 89,075	$4,807.50 plus 22% of the excess over $41,775
$ 89,075	$ 170,050	$15,213.50 plus 24% of the excess over $89,075
$ 170,050	$ 215,950	$34,647.50 plus 32% of the excess over $170,050
$ 215,950	$ 539,900	$49,335.50 plus 35% of the excess over $215,950
$ 539,900		$162,718 plus 37% of the excess over $539,900

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 20,550	10% of taxable income
$ 20,550	$ 83,550	$2,055 plus 12% of the excess over $20,550
$ 83,550	$ 178,150	$9,615 plus 22% of the excess over $83,550
$ 178,150	$ 340,100	$30,427 plus 24% of the excess over $178,150
$ 340,100	$ 431,900	$69,295 plus 32% of the excess over $340,100
$ 431,900	$ 647,850	$98,671 plus 35% of the excess over $431,900
$ 647,850		$174,253.50 plus 37% of the excess over $647,850

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,650	10% of taxable income
$ 14,650	$ 55,900	$1,465 plus 12% of the excess over $14,650
$ 55,900	$ 89,050	$6,415 plus 22% of the excess over $55,900
$ 89,050	$ 170,050	$13,708 plus 24% of the excess over $89,050
$ 170,050	$ 215,950	$33,148 plus 32% of the excess over $170,050
$ 215,950	$ 539,900	$47,836 plus 35% of the excess over $215,950
$ 539,900		$161,218.50 plus 37% of the excess over $539,900

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 10,275	10% of taxable income
$ 10,275	$ 41,775	$1,027.50 plus 12% of the excess over $10,275
$ 41,775	$ 89,075	$4,807.50 plus 22% of the excess over $41,775
$ 89,075	$ 170,050	$15,213.50 plus 24% of the excess over $89,075
$ 170,050	$ 215,950	$34,647.50 plus 32% of the excess over $170,050
$ 215,950	$ 323,925	$49,335.50 plus 35% of the excess over $215,950
$ 323,925		$87,126.75 plus 37% of the excess over $323,925