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 $152,100, and John worked part time as a receptionist for a law firm earning a salary of $29,100. Sandy 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. 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 $4,425. Federal tax withholding of $21,000.Alimony payments to Sandy's former spouse of $10,050 (divorced 12/31/2014).Child support payments for Sandy's child with her former spouse of $4,110.$12,210 of real property taxes.John was reimbursed $605 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.$14,100 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.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): 111-11-1111John (DOB 6/24/1972): 222-22-2222Samantha (DOB 9/30/2016): 333-33-3333Alimony recipient: 555-55-5555 • If you havea qualifyingchild, attachSch. EIC16 Tax (see instructions).Amount.117 Amount from Schedule 2, line 3 ...18 Add lines 16 and 17.19 Nonrefundable child tax credit or credit for otherdependents from Schedule 881220 Amount from Schedule 3, line 821 Add lines 19 and 2022 Subtract line 21 from line 18. If zero or less, enter -0-23 Other taxes, including self-employment tax, from Schedule 2,line 2124 Add lines 22 and 23. This is your total tax25 Federal income tax withheld from:a Form(s) W-2b Form(s) 1099c Other forms (see instructions)d Add lines 25a through 25c27 Earned income credit (EIC)881426 2021 estimated tax payments and amount applied from 2020return.h Nontavahle combat nav electionCheck here if you were born after January 1, 1998, and beforeJanuary 2, 2004, and you satisfy all the other requirements fortaxpayers who are at least age 18, to claim the EIC. Seeinstructions127h4972w25a25b25c27a21,00016171819202122232425d2620,945 X20,9452,720 X16,82019,5400 X87 X8721,000 fourdependents,see instructionsand check here ►Attach Sch. Bif required.StandardDeduction forSingle orMarriedfilingseparately,$12,550• Marriedfilingjointly orQualifyingwidow(er),$25,100• Head ofhousehold,$18,800• If youcheckedany boxunderStandardDeduction,seeinstructions.Samanlaerguson1 Wages, salaries, tips, etc. Attach Form(s) W-22a Tax-exempt interest2a3a Qualified dividends3a4a IRA distributions4a5a Pensions and annuities5a6a Social security benefits6a7 Capital gain or (loss). Attach Schedule D if required. If not required,check here8 Other income from Schedule 1, line 109 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income10 Adjustments to income from Schedule 1, line 2611 Subtract line 10 from line 9. This is your adjusted gross income82012a Standard deduction or itemized deductions (from Schedule A)b Charitable contributions if you take the standard deduction (seeinstructions)c Add lines 12a and 12b13 Qualified business income deduction from Form 8995 or Form 8995-A14 Add lines 12c and 1315 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0-Daugmenb Taxable interestb Ordinary dividendsb Taxable amountb Taxable amountb Taxable amount12a12b39,560Out M_12b3b4b5b6b789101112c131415181,2008204,305186,32510,894 X175,43139,560820 x40380135,0514040

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Answered: Sandy and John Ferguson got married…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter12: Tax Credits And Payments

Section: Chapter Questions

Problem 1BCRQ

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Question

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 $152,100, and John worked part time as a receptionist for a law firm earning a salary of $29,100. Sandy 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. 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 $4,425. Federal tax withholding of $21,000.
Alimony payments to Sandy's former spouse of $10,050 (divorced 12/31/2014).
Child support payments for Sandy's child with her former spouse of $4,110.
$12,210 of real property taxes.
John was reimbursed $605 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.
$14,100 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.

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

• If you have
a qualifying
child, attach
Sch. EIC
16 Tax (see instructions).
Amount.
1
17 Amount from Schedule 2, line 3 ...
18 Add lines 16 and 17.
19 Nonrefundable child tax credit or credit for other
dependents from Schedule 8812
20 Amount from Schedule 3, line 8
21 Add lines 19 and 20
22 Subtract line 21 from line 18. If zero or less, enter -0-
23 Other taxes, including self-employment tax, from Schedule 2,
line 21
24 Add lines 22 and 23. This is your total tax
25 Federal income tax withheld from:
a Form(s) W-2
b Form(s) 1099
c Other forms (see instructions)
d Add lines 25a through 25c
27 Earned income credit (EIC)
8814
26 2021 estimated tax payments and amount applied from 2020
return.
h Nontavahle combat nav election
Check here if you were born after January 1, 1998, and before
January 2, 2004, and you satisfy all the other requirements for
taxpayers who are at least age 18, to claim the EIC. See
instructions
127h
4972
w
25a
25b
25c
27a
21,000
16
17
18
19
20
21
22
23
24
25d
26
20,945 X
20,945
2,720 X
16,820
19,540
0 X
87 X
87
21,000

four
dependents,
see instructions
and check here ►
Attach Sch. B
if required.
Standard
Deduction for
Single or
Married
filing
separately,
$12,550
• Married
filing
jointly or
Qualifying
widow(er),
$25,100
• Head of
household,
$18,800
• If you
checked
any box
under
Standard
Deduction,
see
instructions.
Samanla
erguson
1 Wages, salaries, tips, etc. Attach Form(s) W-2
2a Tax-exempt interest
2a
3a Qualified dividends
3a
4a IRA distributions
4a
5a Pensions and annuities
5a
6a Social security benefits
6a
7 Capital gain or (loss). Attach Schedule D if required. If not required,
check here
8 Other income from Schedule 1, line 10
9 Add lines 1, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income
10 Adjustments to income from Schedule 1, line 26
11 Subtract line 10 from line 9. This is your adjusted gross income
820
12a Standard deduction or itemized deductions (from Schedule A)
b Charitable contributions if you take the standard deduction (see
instructions)
c Add lines 12a and 12b
13 Qualified business income deduction from Form 8995 or Form 8995-A
14 Add lines 12c and 13
15 Taxable income. Subtract line 14 from line 11. If zero or less, enter -0-
Daugmen
b Taxable interest
b Ordinary dividends
b Taxable amount
b Taxable amount
b Taxable amount
12a
12b
39,560
Out M_
1
2b
3b
4b
5b
6b
7
8
9
10
11
12c
13
14
15
181,200
820
4,305
186,325
10,894 X
175,431
39,560
820 x
40380
135,051
4040

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