John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter Samantha. In 2022,
Question:
John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter Samantha. In 2022, John worked as a computer technician at a local university earning a salary of $152,800, and Sandy worked part-time as a receptionist for a law firm earning a salary of $29,800. John also does some Web design work on the side and reported revenues of $4,800 and associated expenses of $1150. The Fergusons received $960 in qualified dividends and a $240 refund of their state income taxes. The Fergusons always itemize their deductions, to get the full benefit of deducting he entire amount of state income tax paid, and their itemized deductions were well over the standard deduction amount last year.
The Fergusons reported making the following payments during the year:
- State income taxes of $4,600. Federal tax withholding of $21,000.
- Alimony payments to John’s former wife $10,400 (divorced in 2014).
- Child support payments for John’s child with his former wife $4,180.
- $12,280 of real property taxes.
- Sandy was reimbursed $640 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer.
- $3,600 to Kid Care daycare center for Samantha’s care while John and Sandy worked.
- $14,800 interest on their home mortgage (acquisition debt of $400,000)
- $3,120 interest on a $41,600 home-equity loan. They used the loan to pay for family vacation and new car.
- $15,400 cash charitable contributions to qualified charities.
- Donation of used furniture to Goodwill. The furniture had a fair market value of $480 and cost $2,400.
Required: What is the Ferguson’s 2022 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.
Essentials Of Federal Taxation 2018
ISBN: 9781260007640
9th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver