ackson nave 20 years ( aren unde age 6 at year- end) who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The couple received salary income of $104,500 and qualified business income of $10,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $202,500 and they sold it for $252,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $16,600 of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? Note: Do not round intermediate calculations. (1) Gross income (2) For AGI deductions (3) Adjusted gross income Description Amount $ 115,000 ( 0 $ 115,000 (4) Standard deduction 25,900 (5) Itemized deductions (6) Greater of standard deduction or itemized deductions (7) Deduction for qualified business income (8) Total deductions from AGI 16,600 72,500 2,100 26,900 (9) Taxable income 45,600 (10) Income tax liability (11) Other taxes 5,197 (12) Total tax 69 69 $ 0 $ 5,197 (13) Credits 6,500 (14) Prepayments 4,000 Tax refund with tax return $ 7,482