In: Accounting
John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2020, 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. The Fergusons had qualifying insurance for purposes of the Affordable Care Act (ACA).
The Fergusons reported making the following payments during the
year:
a. State income taxes of $4,400. Federal tax withholding of
$21,000.
b. Alimony payments to John's former wife of $10,000. (divorced on
12/31/2014).
c. Child support payments for John's child with his former wife of
$4,100.
d. $12,200 of real property taxes.
e. Sandy was reimbursed $600 for employee business expenses she
incurred. She was required to provide documentation for her
expenses to her employer.
f. $3,600 to Kid Care daycare center for Samantha's care while John
and Sandy worked.
g. $14,000 interest on their home mortgage ( $400,000 acquisition debt).
h. $3,000 interest on a $40,000 home-equity loan. They used the
loan to pay for a family vacation and a new car.
i. $15,000 cash charitable contributions to qualified
charities.
j. Donation of used furniture to Goodwill. The furniture had a fair
market value of $400 and cost $2,000.
Required:
What is the Fergusons's 2020 federal income taxes payable or
refund, Including any self-employment tax and AMT, if
applicable?