Comprehensive Problem 8-85 (LO 8-1, LO 8-2, LO 8-3, LO 8-4, LO8-5) Skip to question [The following information applies to thequestions displayed below.]
John and Sandy Ferguson got married eight years ago and have aseven-year-old daughter, Samantha. In 2020, 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.The Fergusons had qualifying insurance for purposes of theAffordable Care Act (ACA). Use Exhibit 8-9, Tax Rate Schedule,Dividends and Capital Gains Tax Rates, 2020 AMT exemption forreference. The Fergusons reported making the following paymentsduring the year: State income taxes of $4,400. Federal taxwithholding of $21,000. Alimony payments to John's former wife of$10,000 (divorced on 12/31/2014). Child support payments for John'schild with his former wife of $4,100. $12,200 of real propertytaxes. Sandy was reimbursed $600 for employee business expenses sheincurred. She was required to provide documentation for herexpenses to her employer. $3,600 to Kid Care day care center forSamantha's care while John and Sandy worked. $14,000 interest ontheir home mortgage ($400,000 acquisition debt). $3,000 interest ona $40,000 home-equity loan. They used the loan to pay for a familyvacation and new car. $15,000 cash charitable contributions toqualified charities. Donation of used furniture to Goodwill. Thefurniture had a fair market value of $400 and cost $2,000.
Comprehensive Problem 8-85 Part a a. What is the Fergusons' 2020federal income taxes payable or refund, including anyself-employment tax and AMT, if applicable? (Round yourintermediate computations to the nearest whole dollar amount.)
