John and Sandy Ferguson got married eight years ago and have aseven-year-old daughter, Samantha. In 2021, John worked as acomputer technician at a local university earning a salary of$152,000, and Sandy worked part time as a receptionist for a lawfirm earning a salary of $29,000. John also does some Web designwork on the side and reported revenues of $4,000 and associatedexpenses of $750. The Fergusons received $800 in qualifieddividends and a $200 refund of their state income taxes. TheFergusons always itemize their deductions, and their itemizeddeductions were well over the standard deduction amount last year.Assume the Fergusons did not receive an advance payment for the2021 individual recovery credit because they are not eligible forthe credit. Use Exhibit 8-10, Tax Rate Schedule, Dividends andCapital Gains Tax Rates, 2021 AMT exemption for reference. TheFergusons reported making the following payments during the year:State income taxes of $4,400. Federal tax withholding of $21,000.Alimony payments to John’s former wife of $10,000 (divorced12/31/2014). Child support payments for John’s child with hisformer wife of $4,100. $12,200 of real property taxes. Sandy wasreimbursed $600 for employee business expenses she incurred. Shewas required to provide documentation for her expenses to heremployer. $3,600 to Kid Care day care center for Samantha’s carewhile John and Sandy worked. $14,000 interest on their homemortgage ($400,000 acquisition debt). $3,000 interest on a $40,000home-equity loan. They used the loan to pay for a family vacationand new car. $15,000 cash charitable contributions to qualifiedcharities. Donation of used furniture to Goodwill. The furniturehad a fair market value of $400 and cost $2,000.
What is the Fergusons' 2021 federal income taxes payable orrefund, including any self-employment tax and AMT, ifapplicable?
John And Sandy Ferguson Got Married Eight Years Ago And Have A Seven Year Old Daughter Samantha In 2021 John Worked A 1 (19.08 KiB) Viewed 11 times
a. What is the Fergusons' 2021 federal income taxes payable or refund, including any self-employment tax and AMT, if applicable? (Round your intermediate computations to the nearest whole dollar amount.) > Answer is complete but not entirely correct. Tax refund 2,118
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