John and Sandy Ferguson got married eight years ago and have a seven-year old daughter Samantha. In
Question:
The Fergusons reported making the following payments during the year
• State income taxes of $4,400. Federal tax withholding of $4,000.
• Alimony payments to John's former wife $10,000
• Child support payments for John's child with his former wife $4,100
• $3,200 of real property taxes
• Sandy was reimbursed $600 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
• In addition to the $750 of web design expenses, John attended a conference to improve his skills associated with his web design work. His trip was for three days and he incurred the following expenses. Airfare $370, total taxi fares for trip $180, meals $80, and conference fee of $200.
• $3,600 to Kid Care daycare center for Samantha's care while John and Sandy worked.
• $14,000 interest on their home mortgage
• $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for family vacation and new car.
• $6,000 cash charitable contributions to qualified charities
• Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost $2,000
Required:
What is the Ferguson's 2014 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? Complete pages 1 and 2 of Form 1040 and Form 6251 for John and Sandy. (Use the 2014 AMT exemptions.)
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Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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