law firm, earning a salary of $29,000. Sandy also does some Web design work on the sid 00 and associated expenses of $750. The Fergusons received $800 in qualified dividend te income taxes. The Fergusons always itemize their deductions, get the full benefit of de state income taxes paid, and their itemized deductions were well over the standard deduc ibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2023 AMT exemption
law firm, earning a salary of $29,000. Sandy also does some Web design work on the sid 00 and associated expenses of $750. The Fergusons received $800 in qualified dividend te income taxes. The Fergusons always itemize their deductions, get the full benefit of de state income taxes paid, and their itemized deductions were well over the standard deduc ibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates, 2023 AMT exemption
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandy
worked as a computer technician at a local university, earning a salary of $152,000, and John worked part time as a
receptionist for a law firm, earning a salary of $29,000. Sandy 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, get the full benefit of deducting the
entire amount of state income taxes paid, 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, 2023 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 payments to Sandy's former spouse of $10,000 (divorced 12/31/2014).
• Child support payments for Sandy's child with her former spouse of $4,100.
.
$12,200 of real property taxes.
• John was reimbursed $600 for employee business expenses he incurred. He was required to provide documentation
for the expenses to his employer.
$3,600 to Kid Care day care center for Samantha's care while Sandy and John 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.
●
a. What is the Fergusons' 2023 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8b479194-152d-4b22-9d3c-2badde1b334b%2F2b9a6ab6-ee7a-4195-b815-14409ff723cb%2Fwdpispr_processed.jpeg&w=3840&q=75)
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Required information
[The following information applies to the questions displayed below.]
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2023, Sandy
worked as a computer technician at a local university, earning a salary of $152,000, and John worked part time as a
receptionist for a law firm, earning a salary of $29,000. Sandy 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, get the full benefit of deducting the
entire amount of state income taxes paid, 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, 2023 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 payments to Sandy's former spouse of $10,000 (divorced 12/31/2014).
• Child support payments for Sandy's child with her former spouse of $4,100.
.
$12,200 of real property taxes.
• John was reimbursed $600 for employee business expenses he incurred. He was required to provide documentation
for the expenses to his employer.
$3,600 to Kid Care day care center for Samantha's care while Sandy and John 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.
●
a. What is the Fergusons' 2023 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.
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