What is the Fergusons' 2023 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?
What is the Fergusons' 2023 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Sagar
![[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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82c37dd7-539d-4635-881c-819485c126c4%2Fad1880a9-8ab5-4356-adde-7585a4571439%2Frcz95an_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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.
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 3 steps with 3 images
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