[The following information applies to the questions displayed below.] John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,100, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,100. John also does some Web design work on the side and reported revenues of $4,100 and associated expenses of $800. The Fergusons received $820 in qualified dividends and a $205 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. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2021 AMT exemption for reference. ..................................... The Fergusons reported making the following payments during the year: State income taxes of $4,425. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,050 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,110. $12,210 of real property taxes. Sandy was reimbursed $605 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked. $14,100 interest on their home mortgage ($400,000 acquisition debt). $3,015 interest on a $40,200 home-equity loan. They used the loan to pay for a family vacation and new car. $15,050 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $410 and cost $2,050. Comprehensive Problem 8-85 Part b and c (Algo) Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. John and Sandy Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: John (DOB 11/07/1970): 111-11-1111 Sandy (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is S 0 $125.000 50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183.000 21 183.000 400,000 20 400.000 402,000 19 402.000 404,000 18 434,000 436,000 2 436,000 438,000 1 438.000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Servi 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $9.950 $ 40,525 S 86,375 S4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 S 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 $ 523,600 $47.843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 S 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 S 172.750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172.750 $ 329,850 S 418,850 $67,206 plus 32% of the excess over $329,850 $ 418.850 S 628,300 595,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 S 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 S6.220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $9.950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $ 9,950 $ 40,525 S 86,375 S4.664 plus 22% of the excess over $40.525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 S 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47.843 plus 35% of the excess over $209,425 $314.150 $84.496.75 plus 37% of the excess over $314,150 Tax Rates for Net Capital Gains and Qualified Dividends Rate* 0% 15% 20% Married Filing Jointly SO - $80,800 $80.801 - $501,600 $501.601+ Married Filing Separately SO - $40.400 $40,401 - $250,800 $250.801+ Taxable Income Single $0 - $40,400 $40,401 - $445,850 $445,851+ Head of Household SO - $54.100 $54,101 - $473,750 $473,751+ Trusts and Estates $0 - $2.700 $2.701 - $13,250 $13,251+ EXHIBIT 8-5 2021 AMT Exemptions Filing Status Exemption Married filing jointly Married filing separately Head of household and single $114.600 57,300 73,600 Phase-Out Complete Phase-Out Begins at for This Level of This Level of AMTI AMTI $1,047,200 $1,505,600 523,600 752.800 523,600 818,000 your spouse ng Jolly want Walls hecking a box below will not change your tax or refund. Foreign country name Foreign province/state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien a - Age/Blindness You: : Were born before January 2, 1956 Are blind Spouse: Was bom before January 2, 1956 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions) (1) First name Last name Child tax credit Credit for other dependents If more than four dependents, see instructions and check here 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 3a Qualified dividends 2a Attach Sch. Bif required. 2b 3a b Taxable interest. b Ordinary dividends. b Taxable amount 3b 4a IRA distributions 4a 4b 5a b Taxable amount 5b 6a b Taxable amount 6b 5a Pensions and annuities 6a Social security benefits 7 ). . 7 Capital gain or loss). Amount 8 Other income from Schedule 1, line 9 7 8 9 9 Standard Deduction for- Single or Married filing separately $12.400 Married filing jointly or Qualifying widow(er), S24.800 Head of household $18,650 If you checked any box under Standard Deduction, see instructions. 9 Add lines 1, 2, 3, 4b, 5, 6, 7, and 8. This is your total income 1, , , 6, 10 Adjustments to income a a From Schedule 1, line 22 b b Charitable contributions if you take the standard deduction. See instruction c Add lines 10a and 10b. These are your total adjustments to income 10a 10b 10c 11 11 Subtract line 10c from line 9. This is your adjusted gross income 12 Standard deduction or itemized deductions (from Schedule A) 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 12 13 14 Add lines 12 and 13 14 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -- 15 Form 1040 Page 1 and 2. Form 1040 (2020) Page 2 8814 4972 16 17 18 19 20 21 22 16 Tax (sce instructions. Amount. 17 Amount from Schedule 2. line 3... 18 Add lines 16 and 17 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3. line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less enter-O- 23 Other taxes, including set-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: a Formis) W-2 b Formis) 1000 cOther forms (see instructions) d Add lines 25 through 250 23 24 2.50 25b 250 250 you have a quallying child, attach Sch. EO 26 2020 estimated tax payments and amount applied from 2019 ratum 25 27 28 you have nontaxablo combat pay. se instructions 29 30 31 27 Earned Income credit (EIC) 28 Additional child tax credit. Attach Schedule 8812 29 American opportunity credit from Form 8863, line 8. 30 Recovery robate credit. Son instructions 31 Amount from Schedule 3. line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 33 Add Ines 25d, 26, and 32. These are your total payments 34 If line 33 more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. Routing number d Account number 32 33 Refund 35a Checking Savings Direct depost? Son instructions 36 Amount of line 34 you want applied to your 2021 estimated tax 36 Amount You Owe 37 Subtract line 33 from line 24. This is the amount you owe now Note: Schedule Hand Schedule SE filers, line 27 may not represent all of the taxes you own for 2020. Son Schedule 3, line 120, and its instructions for details 38 Estimated tax penalty (see instructions 38 For details on how to pay SCO instructions. Third Party Designee Do you want to allow another person to discuss this return with the RS? Se instructions Yes. Complete below No Phone Designe's name Personal identification number (PIN) Sign Here 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 belief, they are true, correct, and complete. Declaration of preparar other than taxpayer is based on all information of which preparer has any knowledge the IRS sant you an identity Your signature Date Your occupation Protection PIN, enter it here son) the IRS sant your spouse an Date Spouse's signature. If a joint return, both must sign. Spouse's occupation Identity Protection PIN, enter it here Joint return? Bee Instruction Keep a copy for your records (nt.) Phone no Emal address Preparer's name Preparer's signature Date PTIN Check it: Sar-employed Paid Preparer Use Only Firm's name Phone no Firm's address Firm's EIN Form 1040 Schedule 1. SCHEDULE 1 (Form 1040) OMB No. 1545-0074 Additional Income and Adjustments to Income 2020 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, ar 1040-NR Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 01 Your social security number Part 1 1 2a 2a b 3 Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or loss). Attach Schedule C Other gains or losses). Attach Farm 4797 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. Amount 3 4 4 5 5 G 6 7 7 8 Part II Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses 10 10 11 Certain business expenses af reservists, performing artists, and fee-basis gavernment officials. Attach Form 2106 11 12 12 13 13 14 14 15 15 Health savings account deduction. Attach Farm 8889 Moving expenses for members of the Armed Forces. Attach Farm 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN 16 16 17 17 18a 18a b 19 19 20 Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Tuition and fees deduction. Attach Form 8917 Add lines 10 through 21. These are your adjustments to income. Enler here and an Form 1040, 1040-SR, or 1040-NR. line 10a 20 21 21 22 22 Additional Taxes OMB No. 1545-0074 Form 1040 Schedule 2. SCHEDULE 2 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 1040-SR, or 1040-NR 2020 Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information Attachment Sequence No. 02 Your social security number Parti | 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Form 8982 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 3 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 4 Unreported social security and Medicare tax from Form: a 4137 b 8910 5 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required 6 Ja Household employment taxes. Attach Schedule H 7a Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 7b 3 Taxes from: a Form 3959 b Form 8980 8 c Instructions, enter code(s) Section 985 net tax liability installment from Form 985-4 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR line 23, or Form 1040-NR. line 23b 10 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040) 2020 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS Additional Credits and Payments OMB No. 1545-0074 Form 1040 Schedule 3. SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR 2020 Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form1040 for instructions and the latest information Attachment Sequence No. 03 Your social security number 1 2 3 4 5 b 8801 c 6 7 8 9 Partl Nonrefundable Credits 1 Foreign tax credit. Attach Form 1118 if required 2 Credit for child and dependent care expenses. Attach Form 2441 3 Education credits from Form 8953, line 19 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credits. Attach Form 5895 6 Other credits from Form: a 3800 7 Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 8962 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuels. Attach Form 4138 12 Other payments or refundable credits: a Form 2439 b Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 c Health coverage tax credit from Form 8885 d Other e Deferral for certain Schedule H or SE filers (see instructions) fAdd lines 12a through 12e 13 Add lines 8 through 121. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 For Paperwork Reduction Act Notice, see your tax return instructions. 10 11 12a 12b 12c 120 12e 12f 13 Cat No. 71480G Schedule 3 (Form 1040) 2020 Form 6251 Alternative Minimum Tax-Individuals OMB No. 1545-0074 2020 Attachment Sequence No. 32 Your coolal courity number 1 2b 20 20 Department of the Treasury Go to www.lrc.gov.FormB 261 for incruotions and the latest Information. Internal Revenue Service (99) Attach to Form 1040, 1040-BR, or 1040-NR. Name() shown on Form 1040, 1040-SR, or 1040-NR John and Sandy Ferguson Parti Alternative Minimum Taxable income (See instructions for how to complete each line.) 1 Enter the amount from Form 1040 or 1040-SR, line 15. if more than zero. Il Form 1040 or 1040-SR, line 15, is zero, subtract lines 12 and 13 of Form 1040 or 1040-SR from line 11 of Form 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.) 2. If filing Schedule A Form 1040) enter the taxes from Schedule A, line 7, otherwise, enter the amount from Form 1040 or 1040-SR, line 12 Tax refund from Schedule 1 (Form 1040), Ine 1 or line 8 o Investment interest expense (difference between regular tax and AMT) d Depletion Difference between regular tax and AMT Net operating loss deduction from Schedule 1 (Form 1040), line 0. Enter as a positive amount Alternative tax net operating loss deduction Interest from specified private activity bonds exempt from the regular tax h Oualified small business stock, so instructions Exercise of incentive stock options (excess of AMT income over regular tax income) | Estates and trusts (amount from Schedule K-1 (Form 1041), bax 12, code A) Disposition of property Difference between AMT and regular tax gain or loss) 1 Depreciation on assets placed in service after 1986 Drence between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation coats (difference between regular tax and AMT) Long-term contracts (difference between AMT and regular tax income) Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) 6 Income from certain installment Sales before January 1, 1987 t Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments Alternative minimum taxable income. Combine Ines through 2. (If married fling separately and ine 4 is more than $745,200, see instructions.) 29 21 2k 21 2m 2n 20 2p 29 at 3 Part II Alternative Minimum Tax (AMT) 6 Exemption IF your filing status i... AND line 4 is not over... THEN enter on line 5... Single or head of household s 518,400 $ 72.900 Married fling jointly or qualitying widowier 1.036,800 113.400 Married ting separately 518,400 56,700 If line 4 is over the amount shown above for your fling status, see instructions. Subtract line 5 from line 4. If more than zeno, go to line 7. It zara ar less, enter -6- here and on line 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 3a; or you had again on both lines 15 and 16 of Schedule D Form 1040) (as refigured for the AMT, necessary) complete Part Ill on the back and enter the amount from line 40 here. All others: Itine is $197,900 or less ($98.950 or less if married filing separately).multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3.958 ($1,979 married fling separately from the result Otherwise, multiply line 6 by 28% (0.28) and subtract $3.896 ($1.948 married filling separately from the result 8 Alternative minimum tax foreign tax credit (see instructions) 8 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040 or 1040-SR, Ine 16 (minus any tax from Form 4972), and Schedule 2 Form 1040). Iine 2. Subtract Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), Ine 1. If you used Schedule to figure your tax on Form 1040 or 1040-SR, line 16. refigure that tax without using Schedule J before completing this ine(see instructions 11 AMT. Subtract line 10 from line 9. If zor or loss, enter -- Enter here and on Schedule 2 Form 1040), line 1 For Paperwork Reduction Act Notice, see your tax return instructions. Tuun ror 10 11 Cat. No. 13800G Form 8251 (2020) 10A [The following information applies to the questions displayed below.] John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,100, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,100. John also does some Web design work on the side and reported revenues of $4,100 and associated expenses of $800. The Fergusons received $820 in qualified dividends and a $205 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. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2021 AMT exemption for reference. ..................................... The Fergusons reported making the following payments during the year: State income taxes of $4,425. Federal tax withholding of $21,000. Alimony payments to John's former wife of $10,050 (divorced 12/31/2014). Child support payments for John's child with his former wife of $4,110. $12,210 of real property taxes. Sandy was reimbursed $605 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked. $14,100 interest on their home mortgage ($400,000 acquisition debt). $3,015 interest on a $40,200 home-equity loan. They used the loan to pay for a family vacation and new car. $15,050 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $410 and cost $2,050. Comprehensive Problem 8-85 Part b and c (Algo) Complete pages 1 and 2, Schedule 1, Schedule 2, and Schedule 3 of Form 1040 and Form 6251 for John and Sandy. John and Sandy Ferguson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: John (DOB 11/07/1970): 111-11-1111 Sandy (DOB 6/24/1972): 222-22-2222 Samantha (DOB 9/30/2016): 333-33-3333 Alimony recipient: 555-55-5555 EXHIBIT 8-10 Child and Dependent Care Credit Percentage If AGI is over But not over Then the percentage is S 0 $125.000 50% 125,000 127,000 49 127,000 129,000 48 129,000 131,000 47 181,000 183.000 21 183.000 400,000 20 400.000 402,000 19 402.000 404,000 18 434,000 436,000 2 436,000 438,000 1 438.000 0 Source: Source: Internal Revenue Code. "$ 21. Expenses For Household And Dependent Care Servi 2021 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,950 10% of taxable income $ 9,950 $ 40,525 995 plus 12% of the excess over $9.950 $ 40,525 S 86,375 S4.664 plus 22% of the excess over $40,525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 S 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 $ 523,600 $47.843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 S 81,050 $1,990 plus 12% of the excess over $19,900 $ 81,050 S 172.750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172.750 $ 329,850 S 418,850 $67,206 plus 32% of the excess over $329,850 $ 418.850 S 628,300 595,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 0 S 14,200 10% of taxable income $ 14,200 S 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 S6.220 plus 22% of the excess over $54,200 $ 86,350 S 164,900 $13,293 plus 24% of the excess over $86,350 $ 164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $9.950 10% of taxable income $ 9,950 $ 40,525 $995 plus 12% of the excess over $ 9,950 $ 40,525 S 86,375 S4.664 plus 22% of the excess over $40.525 $ 86,375 S 164,925 $14.751 plus 24% of the excess over $86,375 $ 164,925 S 209,425 $33.603 plus 32% of the excess over $164.925 $ 209,425 S 314,150 $47.843 plus 35% of the excess over $209,425 $314.150 $84.496.75 plus 37% of the excess over $314,150 Tax Rates for Net Capital Gains and Qualified Dividends Rate* 0% 15% 20% Married Filing Jointly SO - $80,800 $80.801 - $501,600 $501.601+ Married Filing Separately SO - $40.400 $40,401 - $250,800 $250.801+ Taxable Income Single $0 - $40,400 $40,401 - $445,850 $445,851+ Head of Household SO - $54.100 $54,101 - $473,750 $473,751+ Trusts and Estates $0 - $2.700 $2.701 - $13,250 $13,251+ EXHIBIT 8-5 2021 AMT Exemptions Filing Status Exemption Married filing jointly Married filing separately Head of household and single $114.600 57,300 73,600 Phase-Out Complete Phase-Out Begins at for This Level of This Level of AMTI AMTI $1,047,200 $1,505,600 523,600 752.800 523,600 818,000 your spouse ng Jolly want Walls hecking a box below will not change your tax or refund. Foreign country name Foreign province/state/county Foreign postal code You Spouse At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Yes No Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien a - Age/Blindness You: : Were born before January 2, 1956 Are blind Spouse: Was bom before January 2, 1956 Is blind Dependents (see instructions): (2) Social security number (3) Relationship to you (4) if qualifies for (see instructions) (1) First name Last name Child tax credit Credit for other dependents If more than four dependents, see instructions and check here 1 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 3a Qualified dividends 2a Attach Sch. Bif required. 2b 3a b Taxable interest. b Ordinary dividends. b Taxable amount 3b 4a IRA distributions 4a 4b 5a b Taxable amount 5b 6a b Taxable amount 6b 5a Pensions and annuities 6a Social security benefits 7 ). . 7 Capital gain or loss). Amount 8 Other income from Schedule 1, line 9 7 8 9 9 Standard Deduction for- Single or Married filing separately $12.400 Married filing jointly or Qualifying widow(er), S24.800 Head of household $18,650 If you checked any box under Standard Deduction, see instructions. 9 Add lines 1, 2, 3, 4b, 5, 6, 7, and 8. This is your total income 1, , , 6, 10 Adjustments to income a a From Schedule 1, line 22 b b Charitable contributions if you take the standard deduction. See instruction c Add lines 10a and 10b. These are your total adjustments to income 10a 10b 10c 11 11 Subtract line 10c from line 9. This is your adjusted gross income 12 Standard deduction or itemized deductions (from Schedule A) 13 Qualified business income deduction. Attach Form 8995 or Form 8995-A 12 13 14 Add lines 12 and 13 14 15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -- 15 Form 1040 Page 1 and 2. Form 1040 (2020) Page 2 8814 4972 16 17 18 19 20 21 22 16 Tax (sce instructions. Amount. 17 Amount from Schedule 2. line 3... 18 Add lines 16 and 17 19 Child tax credit or credit for other dependents 20 Amount from Schedule 3. line 7 21 Add lines 19 and 20 22 Subtract line 21 from line 18. If zero or less enter-O- 23 Other taxes, including set-employment tax, from Schedule 2, line 10 24 Add lines 22 and 23. This is your total tax 25 Federal income tax withheld from: a Formis) W-2 b Formis) 1000 cOther forms (see instructions) d Add lines 25 through 250 23 24 2.50 25b 250 250 you have a quallying child, attach Sch. EO 26 2020 estimated tax payments and amount applied from 2019 ratum 25 27 28 you have nontaxablo combat pay. se instructions 29 30 31 27 Earned Income credit (EIC) 28 Additional child tax credit. Attach Schedule 8812 29 American opportunity credit from Form 8863, line 8. 30 Recovery robate credit. Son instructions 31 Amount from Schedule 3. line 13 32 Add lines 27 through 31. These are your total other payments and refundable credits 33 Add Ines 25d, 26, and 32. These are your total payments 34 If line 33 more than line 24, subtract line 24 from line 33. This is the amount you overpaid 35a Amount of line 34 you want refunded to you. Routing number d Account number 32 33 Refund 35a Checking Savings Direct depost? Son instructions 36 Amount of line 34 you want applied to your 2021 estimated tax 36 Amount You Owe 37 Subtract line 33 from line 24. This is the amount you owe now Note: Schedule Hand Schedule SE filers, line 27 may not represent all of the taxes you own for 2020. Son Schedule 3, line 120, and its instructions for details 38 Estimated tax penalty (see instructions 38 For details on how to pay SCO instructions. Third Party Designee Do you want to allow another person to discuss this return with the RS? Se instructions Yes. Complete below No Phone Designe's name Personal identification number (PIN) Sign Here 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 belief, they are true, correct, and complete. Declaration of preparar other than taxpayer is based on all information of which preparer has any knowledge the IRS sant you an identity Your signature Date Your occupation Protection PIN, enter it here son) the IRS sant your spouse an Date Spouse's signature. If a joint return, both must sign. Spouse's occupation Identity Protection PIN, enter it here Joint return? Bee Instruction Keep a copy for your records (nt.) Phone no Emal address Preparer's name Preparer's signature Date PTIN Check it: Sar-employed Paid Preparer Use Only Firm's name Phone no Firm's address Firm's EIN Form 1040 Schedule 1. SCHEDULE 1 (Form 1040) OMB No. 1545-0074 Additional Income and Adjustments to Income 2020 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040, 1040-SR, ar 1040-NR Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 01 Your social security number Part 1 1 2a 2a b 3 Additional Income Taxable refunds, credits, or offsets of state and local income taxes Alimony received Date of original divorce or separation agreement (see instructions) Business income or loss). Attach Schedule C Other gains or losses). Attach Farm 4797 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E Farm income or loss). Attach Schedule F Unemployment compensation Other income. Amount 3 4 4 5 5 G 6 7 7 8 Part II Combine lines 1 through 8. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 Adjustments to Income Educator expenses 10 10 11 Certain business expenses af reservists, performing artists, and fee-basis gavernment officials. Attach Form 2106 11 12 12 13 13 14 14 15 15 Health savings account deduction. Attach Farm 8889 Moving expenses for members of the Armed Forces. Attach Farm 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN 16 16 17 17 18a 18a b 19 19 20 Date of original divorce or separation agreement (see instructions) IRA deduction Student loan interest deduction Tuition and fees deduction. Attach Form 8917 Add lines 10 through 21. These are your adjustments to income. Enler here and an Form 1040, 1040-SR, or 1040-NR. line 10a 20 21 21 22 22 Additional Taxes OMB No. 1545-0074 Form 1040 Schedule 2. SCHEDULE 2 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 1040-SR, or 1040-NR 2020 Attach to Form 1040, 1040-SR, or 1040-NR. Go to www.irs.gov/Form 1040 for instructions and the latest information Attachment Sequence No. 02 Your social security number Parti | 1 Alternative minimum tax. Attach Form 6251 2 Excess advance premium tax credit repayment. Attach Form 8982 3 Add lines 1 and 2. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 17 3 Part II Other Taxes 4 Self-employment tax. Attach Schedule SE 4 Unreported social security and Medicare tax from Form: a 4137 b 8910 5 6 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required 6 Ja Household employment taxes. Attach Schedule H 7a Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required 7b 3 Taxes from: a Form 3959 b Form 8980 8 c Instructions, enter code(s) Section 985 net tax liability installment from Form 985-4 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR line 23, or Form 1040-NR. line 23b 10 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 71478U Schedule 2 (Form 1040) 2020 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM IT SELF. DO NOT USE THIS Additional Credits and Payments OMB No. 1545-0074 Form 1040 Schedule 3. SCHEDULE 3 (Form 1040) Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR 2020 Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form1040 for instructions and the latest information Attachment Sequence No. 03 Your social security number 1 2 3 4 5 b 8801 c 6 7 8 9 Partl Nonrefundable Credits 1 Foreign tax credit. Attach Form 1118 if required 2 Credit for child and dependent care expenses. Attach Form 2441 3 Education credits from Form 8953, line 19 Retirement savings contributions credit. Attach Form 8880 5 Residential energy credits. Attach Form 5895 6 Other credits from Form: a 3800 7 Add lines 1 through 6. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 20 Part II Other Payments and Refundable Credits 8 Net premium tax credit. Attach Form 8962 9 Amount paid with request for extension to file (see instructions) 10 Excess social security and tier 1 RRTA tax withheld 11 Credit for federal tax on fuels. Attach Form 4138 12 Other payments or refundable credits: a Form 2439 b Qualified sick and family leave credits from Schedule(s) H and Form(s) 7202 c Health coverage tax credit from Form 8885 d Other e Deferral for certain Schedule H or SE filers (see instructions) fAdd lines 12a through 12e 13 Add lines 8 through 121. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 31 For Paperwork Reduction Act Notice, see your tax return instructions. 10 11 12a 12b 12c 120 12e 12f 13 Cat No. 71480G Schedule 3 (Form 1040) 2020 Form 6251 Alternative Minimum Tax-Individuals OMB No. 1545-0074 2020 Attachment Sequence No. 32 Your coolal courity number 1 2b 20 20 Department of the Treasury Go to www.lrc.gov.FormB 261 for incruotions and the latest Information. Internal Revenue Service (99) Attach to Form 1040, 1040-BR, or 1040-NR. Name() shown on Form 1040, 1040-SR, or 1040-NR John and Sandy Ferguson Parti Alternative Minimum Taxable income (See instructions for how to complete each line.) 1 Enter the amount from Form 1040 or 1040-SR, line 15. if more than zero. Il Form 1040 or 1040-SR, line 15, is zero, subtract lines 12 and 13 of Form 1040 or 1040-SR from line 11 of Form 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.) 2. If filing Schedule A Form 1040) enter the taxes from Schedule A, line 7, otherwise, enter the amount from Form 1040 or 1040-SR, line 12 Tax refund from Schedule 1 (Form 1040), Ine 1 or line 8 o Investment interest expense (difference between regular tax and AMT) d Depletion Difference between regular tax and AMT Net operating loss deduction from Schedule 1 (Form 1040), line 0. Enter as a positive amount Alternative tax net operating loss deduction Interest from specified private activity bonds exempt from the regular tax h Oualified small business stock, so instructions Exercise of incentive stock options (excess of AMT income over regular tax income) | Estates and trusts (amount from Schedule K-1 (Form 1041), bax 12, code A) Disposition of property Difference between AMT and regular tax gain or loss) 1 Depreciation on assets placed in service after 1986 Drence between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation coats (difference between regular tax and AMT) Long-term contracts (difference between AMT and regular tax income) Mining costs (difference between regular tax and AMT) Research and experimental costs (difference between regular tax and AMT) 6 Income from certain installment Sales before January 1, 1987 t Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments Alternative minimum taxable income. Combine Ines through 2. (If married fling separately and ine 4 is more than $745,200, see instructions.) 29 21 2k 21 2m 2n 20 2p 29 at 3 Part II Alternative Minimum Tax (AMT) 6 Exemption IF your filing status i... AND line 4 is not over... THEN enter on line 5... Single or head of household s 518,400 $ 72.900 Married fling jointly or qualitying widowier 1.036,800 113.400 Married ting separately 518,400 56,700 If line 4 is over the amount shown above for your fling status, see instructions. Subtract line 5 from line 4. If more than zeno, go to line 7. It zara ar less, enter -6- here and on line 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 3a; or you had again on both lines 15 and 16 of Schedule D Form 1040) (as refigured for the AMT, necessary) complete Part Ill on the back and enter the amount from line 40 here. All others: Itine is $197,900 or less ($98.950 or less if married filing separately).multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3.958 ($1,979 married fling separately from the result Otherwise, multiply line 6 by 28% (0.28) and subtract $3.896 ($1.948 married filling separately from the result 8 Alternative minimum tax foreign tax credit (see instructions) 8 Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040 or 1040-SR, Ine 16 (minus any tax from Form 4972), and Schedule 2 Form 1040). Iine 2. Subtract Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), Ine 1. If you used Schedule to figure your tax on Form 1040 or 1040-SR, line 16. refigure that tax without using Schedule J before completing this ine(see instructions 11 AMT. Subtract line 10 from line 9. If zor or loss, enter -- Enter here and on Schedule 2 Form 1040), line 1 For Paperwork Reduction Act Notice, see your tax return instructions. Tuun ror 10 11 Cat. No. 13800G Form 8251 (2020) 10A