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 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 itemized deductions, and they had $3,550 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 only claim the child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) Comprehensive Problem 4-55 Part-a a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? Description Gross income (2) For AGI deductions 3) Adjusted gross income (4) Standard deduction (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (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 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9.700 $ 39,475 $970 plus 12% of the excess over $9.700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $510,300 - $153,798,50 plus 37% of the excess over $510,300 Schedule Y-1- Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,400 10% of taxable income $ 19,400 $ 78,950 $1,940 plus 12% of the excess over $19,400 $ 78,950 $168,400 59,086 plus 22% of the excess over $78,950 $168.400 $321,450 $28,765 plus 24% of the excess over $168,400 $321.450 $408.200 565,497 plus 32% of the excess over 5321,450 S408,200 5612,350 $93.257 plus 35 of the excess over $408,200 S612,350 $164,709.50 plus 37% of the excess over $612 230 - $104,709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,850 10% of taxable income $ 13,850 $ 52,850 $1,385 plus 12% of the excess over $13,850 $ 52,850 $ 84,200 56,065 plus 22% of the excess over $52,850 $ 84,200 $160,700 S12,962 plus 24% of the excess over $84,200 $160,700 $204,100 $31,322 plus 32% of the excess over $160,700 S204,100 $510,300 $45,210 plus 35% of the excess over $204,100 $510,300 - $152,380 plus 37% of the excess over S510,300 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: S O S 9,700 10% of taxable income S 9,700 1 $ 39,475 5970 plus 12% of the excess over 59,700 $ 39,475 $ 84,200 $4,543 plus 22 of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84.200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $306,175 546,628 50 plus 35% of the excess over S204,100 S306,175 $82,354 75 plus 37% of the excess over 20 1721