omputer technician at a local university earning a salary of $153,300, and John w r a law firm, earning a salary of $30,300. Sandy also does some Web design wo 5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qu f their state income taxes. The Fergusons always itemize their deductions, get th unt of state income taxes paid, and their itemized deductions were well over the ar. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates,
omputer technician at a local university earning a salary of $153,300, and John w r a law firm, earning a salary of $30,300. Sandy also does some Web design wo 5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qu f their state income taxes. The Fergusons always itemize their deductions, get th unt of state income taxes paid, and their itemized deductions were well over the ar. Use Exhibit 8-10, Tax Rate Schedule, Dividends and Capital Gains Tax Rates,
Chapter5: Introduction To Business Expenses
Section: Chapter Questions
Problem 96TPC: Allison and Paul are married and have no children. Paul is a lawyer who earns a salary of 80,000. In...
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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 $153,300, and John worked part time as a
receptionist for a law firm, earning a salary of $30,300. Sandy also does some Web design work on the side and reported
revenues of $5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qualified dividends and a
$265 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 $4,725. Federal tax withholding of $21,000.
●
Alimony payments to Sandy's former spouse of $10,650 (divorced 12/31/2014).
• Child support payments for Sandy's child with her former spouse of $4,230.
●
$12,330 of real property taxes.
John was reimbursed $665 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.
$15,300 interest on their home mortgage ($400,000 acquisition debt).
$3,195 interest on a $42,600 home-equity loan. They used the loan to pay for a family vacation and new car.
$15,650 cash charitable contributions to qualified charities.
• Donation of used furniture to Goodwill. The furniture had a fair market value of $530 and cost $2,650.
●
●
·
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.
Tax refund](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Feb5533c6-b742-4ecc-b70b-06ac48b46974%2Fc27c28ef-2dab-4d8c-b3ab-ea346b133dce%2Fmd79kas_processed.png&w=3840&q=75)
Transcribed Image Text: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 $153,300, and John worked part time as a
receptionist for a law firm, earning a salary of $30,300. Sandy also does some Web design work on the side and reported
revenues of $5,300 and associated expenses of $1,400. The Fergusons received $1,060 in qualified dividends and a
$265 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 $4,725. Federal tax withholding of $21,000.
●
Alimony payments to Sandy's former spouse of $10,650 (divorced 12/31/2014).
• Child support payments for Sandy's child with her former spouse of $4,230.
●
$12,330 of real property taxes.
John was reimbursed $665 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.
$15,300 interest on their home mortgage ($400,000 acquisition debt).
$3,195 interest on a $42,600 home-equity loan. They used the loan to pay for a family vacation and new car.
$15,650 cash charitable contributions to qualified charities.
• Donation of used furniture to Goodwill. The furniture had a fair market value of $530 and cost $2,650.
●
●
·
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.
Tax refund
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