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Required information [The following information applies to the questions displayed belowj John and Sandy Ferguson got...

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Required information [The following information applies to the questions displayed belowj John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2018, John worked as a computer technician at a local university earning a salary of $153,500, and Sandy worked part-time as a receptionist for a law firm earning a salary of $30,500. John 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 and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordablee Care Act (ACA). Use Exhibit 8-9,Tax Rate Schedule, Dividends and Capital Gains Tax Rates 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 Johns former wife of $10,750 (divorced in 2014) Child support payments for Johns child with his former wife of $4,250 $12,350 of real property taxes Sandy was reimbursed $675 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samanthas care while John and Sandy worked $15,500 interest on their home mortgage ($400,000 acquisition debt). .$3,225 interest on a $43,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,750 cash charitable contributions to qualified charities . Donation of used furniture to Goodwill. The furniture had a fair market value of $550 and cost $2,7501040Individual Income Tax Return 217 967 6 U.S. Individual Income Tax ReturnU OMB No. 1545-0074 IRS Use Only Do not wrte or staple in this space See separate instructions. Your social security number For the year Jan. 1-Dec. 31, 2017, or other tax year beginning If a joint return,spouses first name ddress number and street). If you have a P.O.box, see instructions Make sure the SSNs) above own or past office, state, and 2P code. If you have a foreign address, also camplete spaces below (see instructions Presidential Election Check hene Eyou, ar your spouse if fiing y, want to go to this tund. Chading You Spouse If the qualifying person is a child but not your dependent, anter this Foreign country name COe bobelow will not chage your tax a Filing Status Single 4 Head of household twith qualfyng person. (See instructors.) Married fling jointly (even if only one had incomej Check only one 3 Married filing separately. Enter spouses SSN above HiOL childs name here. and full name here.> Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a b Spouse c Dependents: Ga and 6b No. of children ived with you 3) Dependents chid under age 1 ouqualfying far child tax credi social securnty number relabonship to If more than four dependents, see check here Income Dependents on 6e not entered above d Total number of exemptions claimed 7 Wages, salaries, tips, etc. Attach Form/s) W-2 8a Taxable interest. Attach Schedule B if required b Tax-exempt interest. Do not include an line 8a 8b Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax b Qualified dividends 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here13 14 Other gains or (losses). Attach Form 4797 9b 10 If you did not get a W-2, see instructions,15a IRA distributions b Taxable amount b Taxable amount 16a Pensions and annuities 16a 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Fam income or (oss). Attach Schedule F 19 Unemployment compensation 20a Social security benefits 20a 21 Other income. List type and amount 22 Combine the amounts in the far nght column Ir lines 7through 21.This is your total income 17 b Taxable amount 21 122 Educator expenses 24 23 23 Gross Income Certain business experses of reservists, performing artists, and fee-basis govemment officials. Attach Form 2106 ar 2106-EZ 24 25 25 Health savings account deduction. Attach Form 8889 26 Moving expenses. Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipients SSN 27 30 32 33 Student loan interest deduction 34 Tuition and fees. Attach Form 8917 35 Domestic production activities deduction. Attach Form 890335 36 Add lines 23 through 35 37 Subtract line 36 from line 22. This is your adjusted gross income For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Fom 1040 (2017) Cat. No. 113208Form 1040 (2017) Page 2 38 Amount from line 37 (adjusted gross income) 39a Check You were born before January 2, 1953,Blind. Total boxes 38 Spouse was born before January 2, 1953, Blind. checked39a b If your spouse itemizes on a separate retum or you were a dual-status alien, check here 39b Standard40 temized deductions (from Schedule A) or your standard deduction (see left margin) Deduction 4Subtract line 40 from People who daornber1 44 42 Exemptions. If line 38 is $156,900 or less, mulply $4,050 by the number on line 6d. Otherwise, see instructions 42 on ine 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, entero- Tax(see instructions. Check if any from: aOFormbl 8814 bOFom 4972 cO claimed as a 45 Alternative minimum tax (see instructions). Attach Form 6251 nstructions.47 Married fing 49 Credit for child and dependent care expenses. Attach Form 2441 4 46 Excess advance premium tax credit repayment. Attach Form 8962 Add lines 44, 45, and 46 48 Foreign tax credit. Attach Form 1116 if required 50 Education credits from Form 8863, line 19 arried fling 51 Retirement savings contributions credit. Attach Form 8880 51 52 53 Child tax credit. Attach Schedule 8812, if required. Residential energy credits. Attach Form 5695 Head of 54 Other credits from Fom a 3800 b8801 c 55 Add lines 48 through 54. These are your total credits 56 Subtract ine 55 from line 47. If ine 55 is more than lne 47, enter-0 57 Sel-employment tax. Attach Schedule SE 58 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required 60a Household employment taxes from Schedule H Other Unreported social security and Medicare tax from Form: a 4137 b8919 b First-time homebuyer credit repayment. Attach Form 5405 if required 61 Health care: individual responsibilty (see instructions) Full-year coverage 62 Taxes from: aFom 8959 bForm 8960 Instructions; enter code(s) 63 Add lines 56 through 62. This is your total tax Payments 64 Federal income tax withheld from Foms W-2 and 1099 you have a Eaned income credit (EIC) Schedule ENC 67 Additional chid tax credit. Attach Schedule 8812 65 2017 estimated tax payments and amount applied from 2016return65 68 American opportunity credit from Form 8863, line 8 69 Net premium tax credit. Attach Form 8962 70 Amount paid with request for extension to file 71 Excess social security and tier 1 RRTA tax withheld 72 Credit for federal tax on fuels. Attach Form 4136 74 Add lines 64, 65, 66a, and 67 through 73. These are your total payments Refund 75 ine 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here Drect deposit?b Routing number Checking 77 Amou nt of ine 75 you want applied to your 2018 estimated tax 77 Amount 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions78 You Owe 79 Estimated tax penalty (see instructions) Third Party Do you want to allow another person to discuss this return with the IRS (see instructionsjYes. Complete below. Designee No Phone Under panaities of perjury, I dadlare that I hae eaminad this natum and aocompanying schadulas and stataments, and to tha best of my knowlediga and belt, thay are trua, correct, and accurately Ist all amounts and sources af income I nacaived during tha tax year. Daclaration of praparer jothar than taxpaya is based on all intormation af which pruparer has any knowladga Keep a copy for Spouses signature. If a joint returm, both must sign Date If the IRS sent you an ldentity Protection Preparer Use Only Frmsnsme Go to www.irs.gowFom 1040 for instructions and the latest information. Fom 1040 (2017)

Required information [The following information applies to the questions displayed belowj John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter, Samantha. In 2018, John worked as a computer technician at a local university earning a salary of $153,500, and Sandy worked part-time as a receptionist for a law firm earning a salary of $30,500. John 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 and their itemized deductions were well over the standard deduction amount last year. The Fergusons had qualifying insurance for purposes of the Affordablee Care Act (ACA). Use Exhibit 8-9,Tax Rate Schedule, Dividends and Capital Gains Tax Rates 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 John's former wife of $10,750 (divorced in 2014) Child support payments for John's child with his former wife of $4,250 $12,350 of real property taxes Sandy was reimbursed $675 for employee business expenses she incurred. She was required to provide documentation for her expenses to her employer. $3,600 to Kid Care day care center for Samantha's care while John and Sandy worked $15,500 interest on their home mortgage ($400,000 acquisition debt). .$3,225 interest on a $43,000 home-equity loan. They used the loan to pay for a family vacation and new car. $15,750 cash charitable contributions to qualified charities . Donation of used furniture to Goodwill. The furniture had a fair market value of $550 and cost $2,750
1040Individual Income Tax Return 217 967 6 U.S. Individual Income Tax ReturnU OMB No. 1545-0074 IRS Use Only Do not wrte or staple in this space See separate instructions. Your social security number For the year Jan. 1-Dec. 31, 2017, or other tax year beginning If a joint return,spouse's first name ddress number and street). If you have a P.O.box, see instructions Make sure the SSNs) above own or past office, state, and 2P code. If you have a foreign address, also camplete spaces below (see instructions Presidential Election Check hene Eyou, ar your spouse if fiing y, want to go to this tund. Chading You Spouse If the qualifying person is a child but not your dependent, anter this Foreign country name COe bobelow will not chage your tax a Filing Status Single 4 Head of household twith qualfyng person. (See instructors.) Married fling jointly (even if only one had incomej Check only one 3 Married filing separately. Enter spouse's SSN above HiOL child's name here. and full name here.> Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a b Spouse c Dependents: Ga and 6b No. of children ived with you 3) Dependent's chid under age 1 ouqualfying far child tax credi social securnty number relabonship to If more than four dependents, see check here Income Dependents on 6e not entered above d Total number of exemptions claimed 7 Wages, salaries, tips, etc. Attach Form/s) W-2 8a Taxable interest. Attach Schedule B if required b Tax-exempt interest. Do not include an line 8a 8b Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax b Qualified dividends 10 Taxable refunds, credits, or offsets of state and local income taxes 11 Alimony received 12 Business income or (loss). Attach Schedule C or C-EZ 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here13 14 Other gains or (losses). Attach Form 4797 9b 10 If you did not get a W-2, see instructions,15a IRA distributions b Taxable amount b Taxable amount 16a Pensions and annuities 16a 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 18 Fam income or (oss). Attach Schedule F 19 Unemployment compensation 20a Social security benefits 20a 21 Other income. List type and amount 22 Combine the amounts in the far nght column Ir lines 7through 21.This is your total income 17 b Taxable amount 21 122 Educator expenses 24 23 23 Gross Income Certain business experses of reservists, performing artists, and fee-basis govemment officials. Attach Form 2106 ar 2106-EZ 24 25 25 Health savings account deduction. Attach Form 8889 26 Moving expenses. Attach Form 3903 27 Deductible part of self-employment tax. Attach Schedule SE 28 Self-employed SEP, SIMPLE, and qualified plans 29 Self-employed health insurance deduction 30 Penalty on early withdrawal of savings 31a Alimony paid b Recipient's SSN 27 30 32 33 Student loan interest deduction 34 Tuition and fees. Attach Form 8917 35 Domestic production activities deduction. Attach Form 890335 36 Add lines 23 through 35 37 Subtract line 36 from line 22. This is your adjusted gross income For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Fom 1040 (2017) Cat. No. 113208
Form 1040 (2017) Page 2 38 Amount from line 37 (adjusted gross income) 39a Check You were born before January 2, 1953,Blind. Total boxes 38 Spouse was born before January 2, 1953, Blind. checked39a b If your spouse itemizes on a separate retum or you were a dual-status alien, check here 39b Standard40 temized deductions (from Schedule A) or your standard deduction (see left margin) Deduction 4Subtract line 40 from People who daornber1 44 42 Exemptions. If line 38 is $156,900 or less, mulply $4,050 by the number on line 6d. Otherwise, see instructions 42 on ine 43 Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, entero- Tax(see instructions. Check if any from: aOFormbl 8814 bOFom 4972 cO claimed as a 45 Alternative minimum tax (see instructions). Attach Form 6251 nstructions.47 Married fing 49 Credit for child and dependent care expenses. Attach Form 2441 4 46 Excess advance premium tax credit repayment. Attach Form 8962 Add lines 44, 45, and 46 48 Foreign tax credit. Attach Form 1116 if required 50 Education credits from Form 8863, line 19 arried fling 51 Retirement savings contributions credit. Attach Form 8880 51 52 53 Child tax credit. Attach Schedule 8812, if required. Residential energy credits. Attach Form 5695 Head of 54 Other credits from Fom a 3800 b8801 c 55 Add lines 48 through 54. These are your total credits 56 Subtract ine 55 from line 47. If ine 55 is more than lne 47, enter-0 57 Sel-employment tax. Attach Schedule SE 58 59 Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required 60a Household employment taxes from Schedule H Other Unreported social security and Medicare tax from Form: a 4137 b8919 b First-time homebuyer credit repayment. Attach Form 5405 if required 61 Health care: individual responsibilty (see instructions) Full-year coverage 62 Taxes from: aFom 8959 bForm 8960 Instructions; enter code(s) 63 Add lines 56 through 62. This is your total tax Payments 64 Federal income tax withheld from Foms W-2 and 1099 you have a Eaned income credit (EIC) Schedule ENC 67 Additional chid tax credit. Attach Schedule 8812 65 2017 estimated tax payments and amount applied from 2016return65 68 American opportunity credit from Form 8863, line 8 69 Net premium tax credit. Attach Form 8962 70 Amount paid with request for extension to file 71 Excess social security and tier 1 RRTA tax withheld 72 Credit for federal tax on fuels. Attach Form 4136 74 Add lines 64, 65, 66a, and 67 through 73. These are your total payments Refund 75 ine 74 is more than line 63, subtract line 63 from line 74. This is the amount you overpaid 75 76a Amount of line 75 you want refunded to you. If Form 8888 is attached, check here Drect deposit?b Routing number Checking 77 Amou nt of ine 75 you want applied to your 2018 estimated tax 77 Amount 78 Amount you owe. Subtract line 74 from line 63. For details on how to pay, see instructions78 You Owe 79 Estimated tax penalty (see instructions) Third Party Do you want to allow another person to discuss this return with the IRS (see instructionsjYes. Complete below. Designee No Phone Under panaities of perjury, I dadlare that I hae eaminad this natum and aocompanying schadulas and stataments, and to tha best of my knowlediga and belt, thay are trua, correct, and accurately Ist all amounts and sources af income I nacaived during tha tax year. Daclaration of praparer jothar than taxpaya is based on all intormation af which pruparer has any knowladga Keep a copy for Spouse's signature. If a joint returm, both must sign Date If the IRS sent you an ldentity Protection Preparer Use Only Frmsnsme Go to www.irs.gowFom 1040 for instructions and the latest information. Fom 1040 (2017)

Answers

Answer:

John Sandy Total
Salary 55000 22000
Revenue from Web design work 5000
Associated expenses from web design work -1000
Total income 59000 22000 81000
Dividends 1200
State income Tax refund 300
82500
Deductions for A G I
Alimony payments 12000
Adjusted Gross Income 70500
Itemized deduction
Real property taxes 3300
State income tax 4800
Home m or tag age 13000
Family vacation 3500
Charitable Contribution 7300
Donation of furniture 500
u n reimbursed expenses 750
Total itemized deductions 33150
49350
personal & dependency exemption 7150
Taxable Income 42200
Federal Income Tax 6320.5
Self Employment [email protected]% 612
Total Taxes 6932.5
Tax Credit 0
Tax Withholding 5200
Tax Owned 1732.5
.

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