Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandyworked as a computer technician at a local university, earning a salary of $152,000, and John worked part time as areceptionist for a law firm, earning a salary of $29,000. Sandy also does some Web design work on the side and reportedrevenues of $4,000 and associated expenses of $750. The Fergusons received $800 in qualified dividends and a $200refund of their state income taxes. The Fergusons always itemize their deductions, and their itemized deductions werewell over the standard deduction amount last year. Assume that in the previous year, Fergusons got the full benefit ofdeducting the entire amount of their state income taxes. Use Exhibit 8-10. Tax Rate Schedule.Dividends and Capital Gains Tax Rates. 2022 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 documentationfor 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' 2022 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.8

Here, the question is regarding the Fergusons' 2022 federal income tax payable or refund, including…

Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, 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.

Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, 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.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 67TA

See similar textbooks

Similar questions

Jane and Robert Brown are married and have eight children, all of whom are eligible to be claimed as the couples dependents. Robert earns 196,000 working as senior manager in a public accounting firm, and Jane earns 78,000 as a second-grade teacher. Given their large family, they live in a frugal manner. The Browns maintain a large garden and some fruit trees from which they get most of their produce, and the children take family and consumer science classes so that they can help make the familys clothing. The Browns record no gross income other than their salaries (all of their investment income is earned from qualified retirement savings), and their itemized deductions are less than the standard deduction. In addition, they incur no additional adjustments or preferences for AMT purposes. a. What is the couples 2019 regular tax liability? b. What is the couples 2019 AMT? c. Express the calculation of the couples AMT for 2019 as a Microsoft Excel formula. Place any parameter that could change annually in a separate cell, and incorporate the cell references into the formula.
John Benson, age 40, is single. His Social Security number is 111-11-1111, and he resides at 150 Highway 51, Tangipahoa, LA 70465. John has a 5-year-old child, Kendra, who lives with her mother, Katy. As a result of his divorce in 2016, John pays alimony of 6,000 per year to Katy and child support of 12,000. The 12,000 of child support covers 65% of Katys costs of rearing Kendra. Kendras Social Security number is 123-45-6789, and Katys is 123-45-6788. Johns mother, Sally, lived with him until her death in early September 2019. He incurred and paid medical expenses for her of 15,588 and other support payments of 11,000. Sallys only sources of income were 5,500 of interest income on certificates of deposit and 5,600 of Social Security benefits, which she spent on her medical expenses and on maintenance of Johns household. Sallys Social Security number was 123-45-6787. John is employed by the Highway Department of the State of Louisiana in an executive position. His salary is 95,000. The appropriate amounts of Social Security tax and Medicare tax were withheld. In addition, 9,500 was withheld for Federal income taxes and 4,000 was withheld for state income taxes. In addition to his salary, Johns employer provides him with the following fringe benefits. Group term life insurance with a maturity value of 95,000; the cost of the premiums for the employer was 295. Group health insurance plan; Johns employer paid premiums of 5,800 for his coverage. The plan paid 2,600 for Johns medical expenses during the year. Upon the death of his aunt Josie in December 2018, John, her only recognized heir, inherited the following assets. Three months prior to her death, Josie gave John a mountain cabin. Her adjusted basis for the mountain cabin was 120,000, and the fair market value was 195,000. No gift taxes were paid. During the year, John reported the following transactions. On February 1, 2019, he sold for 45,000 Microsoft stock that he inherited from his father four years ago. His fathers adjusted basis was 49,000, and the fair market value at the date of the fathers death was 41,000. The car John inherited from Josie was destroyed in a wreck on October 1, 2019. He had loaned the car to Katy to use for a two-week period while the engine in her car was being replaced. Fortunately, neither Katy nor Kendra was injured. John received insurance proceeds of 16,000, the fair market value of the car on October 1, 2019. On December 28, 2019, John sold the 300 acres of land to his brother, James, for its fair market value of 160,000. James planned on using the land for his dairy farm. Other sources of income for John are: Potential itemized deductions for John, in addition to items already mentioned, are: Part 1Tax Computation Compute Johns net tax payable or refund due for 2019. Part 2Tax Planning Assume that rather than selling the land to James, John is considering leasing it to him for 12,000 annually with the lease beginning on October 1, 2019. James would prepay the lease payments through December 31, 2019. Thereafter, he would make monthly lease payments at the beginning of each month. What effect would this have on Johns 2019 tax liability? What potential problem might John encounter? Write a letter to John in which you advise him of the tax consequences of leasing versus selling. Also prepare a memo addressing these issues for the tax files.
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 $153,500, and John worked part time as a receptionist for a law firm, earning a salary of $30,500. Sandy also does some Web design work on the side and reported revenues of $5,500 and associated expenses of $1,500. The Fergusons received $1,100 in qualified dividends and a $275 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 $4,775. Federal tax withholding of $21,000. • Alimony payments to Sandy's former…
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university, earning a salary of $152,200, and John worked part time as a receptionist for a law firm, earning a salary of $29,200. Sandy also does some Web design work on the side and reported revenues of $4,200 and associated expenses of $850. The Fergusons received $800 in qualified dividends and a $210 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, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,450. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse…
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $152,600, and John worked part time as a receptionist for a law firm earning a salary of $29,600. Sandy also does some Web design work on the side and reported revenues of $4,600 and associated expenses of $1,050. The Fergusons received $920 in qualified dividends and a $230 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, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,550. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse…
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $152,100, and John worked part time as a receptionist for a law firm earning a salary of $29,100. Sandy also does some Web design work on the side and reported revenues of $4,100 and associated expenses of $800. The Fergusons received $820 in qualified dividends and a $205 refund of their state income taxes. The Fergusons always itemize their deductions, 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, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,425. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse of $10,050 (divorced 12/31/2014). Child support payments for Sandy's child with…
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $153,700, and John worked part time as a receptionist for a law firm earning a salary of $30,700. Sandy also does some Web design work on the side and reported revenues of $5,700 and associated expenses of $1,600. The Fergusons received $1,140 in qualified dividends and a $285 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, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: • State income taxes of $4,825. Federal tax withholding of $21,000. • Alimony payments to Sandy's former…
Sandy and John Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2022, Sandy worked as a computer technician at a local university earning a salary of $152,100, and John worked part time as a receptionist for a law firm earning a salary of $29,100. Sandy also does some Web design work on the side and reported revenues of $4,100 and associated expenses of $800. The Fergusons received $820 in qualified dividends and a $205 refund of their state income taxes. The Fergusons always itemize their deductions, 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, 2022 AMT exemption for reference. The Fergusons reported making the following payments during the year: State income taxes of $4,425. Federal tax withholding of $21,000. Alimony payments to Sandy's former spouse of $10,050 (divorced 12/31/2014). Child support payments for Sandy's child with…
John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2021, John worked as a computer technician at a local university earning a salary of $152,000, and Sandy worked part time as a receptionist for a law firm earning a salary of $29,000. John 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, and their itemized deductions were well over the standard deduction amount last year. Assume the Fergusons did not receive an advance payment for the 2021 individual recovery credit because they are not eligible for the credit. Use Exhibit 8-10, Tax Rate Schedule Dividends and Capital Gains Tax Rates. 2021 AMT exemption for reference. The Fergusons reported making the following payments during the year: • State income taxes of $4,400. Federal tax…
John and Sandy ferguson got married 8 years a go and have a 7 year old duaghter, Samantha. In 2019, john workes as a computer technician at a local university, earning a salary of $152,000 and Sandy worked part-time as a receptiolist for a law firm, earnig $29,000.John also does some web design work on the side and reported a revenue of $4,000 and associated expenses of $750.Ferguson received $800 in qualified dividends and a $200 refund of their state income taxes. They always itemized their deductions, and thier itemized deductions were well over standard deductions amount last year. They had a qulified insurance for purposes of affordable care Act. The Ferguson reported making the following payments during the year. .State income taxes $4,000 .federal tax witholding of $21,000 .Alimony payment to Johns former wife of $10,000 (divorced 2014) .$4,000 for child support payment .$12,200 of real property taxes. $3,600 to kid care day care centre. $14,000 interest on their home mortgage…
Toby and Nancy are engaged and plan to get married. During 2023, Toby is a full-time student and earns $9, 400 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Nancy is employed and has wages of $85, 800.
Diana and Ryan Workman were married on January 1 of last year. Diana has an eight-year-old son, Jorge, from her previous marriage. Ryan works as a computer programmer at Datafile Incorporated (DI) earning a salary of $100,000. Diana is self-employed and runs a day care center. The Workmans reported the following financial information pertaining to their activities during the current year. Ryan earned a $100,000 salary for the year. Ryan borrowed $12,800 from DI to purchase a car. DI charged him 2 percent interest ($256) on the loan, which Ryan paid on December 31. DI would have charged Ryan $800 if interest had been calculated at the applicable federal interest rate. Assume that tax avoidance was not a motive for the loan. Diana received $2,400 in alimony and $5,300 in child support payments from her former husband. They divorced in 2016. Diana won a $980 cash prize at her church-sponsored Bingo game. The Workmans received $900 of interest from corporate bonds and $650 of interest…