a. What is the Fergusons' 2022 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? Note: Round your intermediate computations to the nearest whole dollar amount.
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
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.
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