88. John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter Samant…

88. John and Sandy Ferguson got married eight years ago and have
a seven-year-old daughter Samantha. In 2016, John worked as a
computer technician at a local university earning a salary of
$52,000, 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: • State income taxes of $4,400.
Federal tax withholding of $4,000. • Alimony payments to John’s
former wife of $10,000. • Child support payments for John’s child
with his former wife of $4,100. • $3,200 of real property taxes. •
Sandy was reimbursed $600 for employee business expenses she
incurred. She was required to provide documentation for her
expenses to her employer. • In addition to the $750 of Web design
expenses, John attended a conference to improve his skills
associated with his Web design work. His trip was for three days
and he incurred the following expenses: airfare $370, total taxi
fares for trip $180, meals $80, and conference fee of $200. •
$3,600 to Kid Care day care center for Samantha’s care while John
and Sandy worked. • $14,000 interest on their home mortgage. •
$3,000 interest on a $40,000 home-equity loan. They used the loan
to pay for a family vacation and new car. • $6,000 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. Complete pages 1 and 2 of Form 6251 for John and Sandy for
tax year 2016.

88. John and Sandy Ferguson got married eight years ago and have a seven-year-old daughter Samant…