Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine, Michael, and Candice).The couple received salary income of $100,000, 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 itemized deductions, and they had $6,250 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children.

a. What is the Jacksons? taxable income, and what is their tax liability or (refund)? (Do not round intermediate calculation. Round "Income tax liability", "Total tax", "Taxes payable or Refund due" to 2 decimal places.)

1. Gross Income= 2. For AGI Deductions 3. Adjusted Gross Income 4. Standard Deduction 5. Itemized Deductions 6. Greater or Lesser of standard deductions or itemized deductions = 7. Personal and Dependency exemptions 8. Total Deductions from AGI 9. Taxable Income 10. Income tax liability 11. Other taxes 12. Total Tax 13. Credits 14. Prepayments 15. Refund due or Taxes Payable =

2016 Federal Tax Rate Schedule Schedule X-Single Schedule Z-Head of Household If taxable If taxable income is But not income is But not over: over: The tax is: over: over: The tax is: 0 $ 9,275 10% of taxable income $ 0 $ 13,250 10% of taxable income 9,275 $ 37,650 $927.50 plus 15% of the excess $ 13,250 $ 50,400 $1,325.00 plus 15% of the excess over $9,275 over $13,250 $ 37,650 $ 91,150 $5,183.75 plus 25% of the excess $ 50,400 $130,150 $6,897.50 plus 25% of the excess over $37,650 over $50,400 $ 91,150 $190,150 $18,558.75 plus 28% of the excess $130, 150 $210,800 $26,835.00 plus 28% of the excess over $91, 150 over $130, 150 $190,150 $413,350 $46,278.75 plus 33% of the excess $210,800 $413,350 $49,417.00 plus 33% of the excess over $190, 150 over $210,800 $413,350 $415,050 $119,934.75 plus 35% of the excess $413,350 $441,000 $116,258.50 plus 35% of the excess over $413,350 over $413,350 $415,050 $120,529.75 plus 39.6% of the excess $441,000 $125,936.00 plus 39.6% of the excess over $415,050 over $441,000 Schedule Y-1-Married Filing Jointly Schedule Y-2-Married Filing Separately of Qualifying Widow(er) If taxable If taxable income is But not income is But not over: over: The tax is: over: over: The tax is: $ $ 9,275 10% of taxable income $ 0 $ 18,550 10% of taxable income $ 9,275 37,650 $927.50 plus 15% of the excess $ 18,550 $ 75,300 $1,855.00 plus 15% of the excess over $9,275 over $18,550 $ 37,650 $ 75,950 $5,183.75 plus 25% of the excess $ 75,300 $151,900 $10,367.50 plus 25% of the excess over $37,650 over $75,300 $ 75,950 $115,725 $14,758.75 plus 28% of the excess $151,900 $231,450 $29,517.50 plus 28% of the excess over $75,950 over $151,900 $115,725 $206,675 $25,895.75 plus 33% of the excess $231,450 $413,350 $51,791.50 plus 33% of the excess over $115,725 over $231,450 $206,675 $233,475 $55,909.25 plus 35% of the excess $413,350 $466,950 $111,818.50 plus 35% of the excess over $206,675 over $413,350 $233,475 $65,289.25 plus 39.6% of the excess $466,950 $130,578.50 plus 39.6% of the excess over $233,475 over $466,950