JUNII and Sahdy 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 $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 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 $4,400. Federal tax withholding of $21,000. Alimony pay.nents to John's former wife of $10,000 (divorced 12/31/2014). • Child support payments for John's child with his former wife of $4.100. $12,200 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. •$3,600 to Kid Care day care center for Samantha's care while John and Sandy worked. • $14,000 interest on their home mortgage ($400,000 acquisition debt). • $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. • $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost
JUNII and Sahdy 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 $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does some Web design work on the side and reported revenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200 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 $4,400. Federal tax withholding of $21,000. Alimony pay.nents to John's former wife of $10,000 (divorced 12/31/2014). • Child support payments for John's child with his former wife of $4.100. $12,200 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. •$3,600 to Kid Care day care center for Samantha's care while John and Sandy worked. • $14,000 interest on their home mortgage ($400,000 acquisition debt). • $3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and new car. • $15,000 cash charitable contributions to qualified charities. Donation of used furniture to Goodwill. The furniture had a fair market value of $400 and cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What is the Fergusons' 2021 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?
Transcribed Image Text:1749.41
81,050
53,406.4
X 22%
749.41
to
7aו' Lh ULO
Gross Incomes
Salany-3152,000 +*29,000
Selfempbyment revenues
Dividends
State income taxrefund
D O Gross Income
FOR AGI Detuctions.
Self-emplayment experses
Employer, Pationof selfemployment taxes
(4000-00*92.35% *2.9%/2
1000
800
-43.52 (t14)
-$43.52
00000
*10,793,5210, 794
Total for AGI dleduclions
3.
3 AGI
Itemized Deductions:
Taxes (sateincenve texest realproperty taxes,uptothe)
$75,206.48
Charitable Contributions Cash
Charitable Contributions Property 400
D4otal Itemized deductionns
stemizad deduction is greater than Stanclard deduction 24.800)
पगंजकणा UMC+
1400
Total from AGI deductions
Ta xable income $75,206.48-40,050)
Tax on Income other Hhan qualified diidenats $21,077.41
135,156.48-800=/34,456.48)9328422% x(134, 486.418-81,I5)|
Tax an qualified divictends (80015%
$40,050
*(35,156.48
$120
(10)Self Empoyment Tex
122 Tolal Taxes (Gro)
3R Child and dapendent Care Credit
O 1)Child Tar Credit
) Federal Tax Withholhing
ng
Tax Payablé (refund)
$21.482 2418
00000
Transcribed Image Text: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 $152,000, and
Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John also does
some Web design work on the side and reported revenues of $4,000 and associated expenses of $750.
The Fergusons received $800 in qualified dividends and a $20O 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 $4,400. Federal tax withholding of $21,000.
Alimony pay.ments to John's former wife of $10,000 (divorced 12/31/2014).
• Child support payments for John's child with his former wife of $4,100.
•$12,200 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.
$3,600 to Kid Care day care center for Samantha's care while John and Sandy worked.
$14,000 interest on their home mortgage ($400,000 acquisition debt).
$3,000 interest on a $40,000 home-equity loan. They used the loan to pay for a family vacation and
new car.
$15,000 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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education