Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary Income of $100,000 and qualified business Income of $10,000 from an Investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The. Jacksons Incurred $16,500 of temized deductions, and they had $3,050 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 is 18 years of age, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. The Jacksons are also allowed to claim a $2.400 recovery rebate credit for themselves and a $500 credit for each of their three youngest children. Assume they did not receive the rebate credit in advance.(Use the tax rate schedules) a. What is the Jacksons' taxable income, and what is their tax tability or (refund)? Deseription Amount (1)Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (0) (7) Deduction for qualified business income 2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over:But not over: The tax is: $ 0 $ 9,875 $ 40,125 $ 85,525 $163,300 $207,350 $518,400 S 9,875 $ 40,125 $987.50 plus 12% of the excess over $9,875 $ 85,525 $4,617.50 phus 22% of the excess over $40,125 $163,300 $14,605.50 plus 24% of the excess over $85,525 $207,350 $33,271.50 plus 32% of the excess over $163,300 $518,400 $47,367.50 plus 35% of the excess over $207,350 10% of taxable income $156,235 plus 37% of the excess over $518,400 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over:But not over: The tax is: $ 19,750 $ 80,250 $171,050 $326,600 $414,700 $622,050 $ 19,750 10% of taxable income $ 80,250 $1,975 plus 12% of the excess over $19,750 $171,050 S9,235 plus 22% of the excess over $80,250 $326,600 $29,211 plus 24% of the excess over $171,050 $414,700 S66,543 plus 32% of the excess over $326,600 $622,050 $94,735 plus 35% of the excess over $414,700 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 14,100 $ 53,700 S1,410 plus 12% of the excess over $14,100 S 85,500 $163,300 $13,158 plus 24% of the excess over $85,500 $207.350 $31,830 plus 32% of the excess over $163,300 $518,400 $45,926 plus 35% of the excess over $207,350 10% of taxable income $ 14,100 $ 53,700 S 85,500 $163,300 $207,350 $518,400 $6,162 plus 22% of the excess over $53,700 $154.793.50 plus 37% of the excess over $518,400 $ 80,250 $171,050 $326,600 $414,700 $622,050 $171,050 $9,235 phus 22% of the excess over $80,250 $326,600 $29,211 plus 24% of the excess over $171,050 $414,700 $66,543 plus 32% of the excess over $326,600 $622,050 $94,735 plus 35% of the excess over $414,700 $167,307.50 plus 37% of the excess over $622,050 Schedule Z-Head of Household If taxable income is over:But not over: The tax is: $ 14,100 $ 53,700 $1,410 plus 12% of the excess over $14,100 $ 85,500 $6,162 plus 22% of the excess over $53,700 $163,300 $13,158 plus 24% of the excess over $85,500 $207,350 $31,830 plus 32% of the excess over $163,300 $518,400 $45,926 plus 35% of the excess over $207,350 10% of taxable income $ 14,100 $ 53,700 $ 85,500 $163,300 $207,350 $518,400 $154,793.50 plus 37% of the excess over $518,400 Schedule Y-2-Married Filing Separately If taxable income is over:But not over: The tax is: $ 9,875 $ 40,125 S 85,525 $ 9,875 $ 40,125 $ 85,525 $163,300 $207,350 $311,025 10% of taxable income $987.50 plus 12% of the excess over $9,875 $4,617.50 plus 22% of the excess over $40,125 $163,300 S14,605.50 plus 24% of the excess over $85,525 $207,350 $33,271.50 plus 32% of the excess over $163,300 $311,025 $47,367.50 plus 35% of the excess over $207,350 S83,653.75 plus 37% of the excess over $311,025 Required information a. What Is the Jacksons' taxable Income, and what Is thelr tax llability or (refund)? Description Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4)Standard deduction (5) Itemized deductions (8) (7)|Deduction for qualified business income (8) Total deductions from AGI (9) Taxable income (10) Income tax liability (11) Other taxes (12) Total tax (13) Credits (14) Prepayments < Prev