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 $130,000 and qualified business income of $13,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $215,000 and they sold it for $265,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $17,100 of itemized deductions, and they had $3,350 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. (Use the tax rate schedules.) a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? (Do not round intermediate calculations.) Amount Amount Description (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Greater of standard deductions or 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 Tax due with tax return c. What would their taxable income be if their itemized deductions totaled $28,600 instead of $17,100? X Answer is not complete. Description Amount Gross income For AGI deductions Adjusted gross income (2) (3) (4) (5) (6) Standard deduction Itemized deductions Greater of standard deductions or itemized deductions Deduction for qualified business income Total deductions from AGI (8) Taxable income Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9.875 10% of taxable income $ 9.875 $ 40.125 $987.50 plus 12% of the excess over $9.875 $ 40.125 $ 85.525 $4,617.50 plus 22% of the excess over $40,125 $ 85.525 $163,300 S14,605.50 plus 24% of the excess over $85,525 $163.300 $207 350 $33.271.50 plus 32% of the excess over $163.300 $207 350 $518.400 $47.367.50 plus 35% of the excess over $207.350 $518,400 $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: S 0 S 19.750 10% of taxable income S 19.750 S 80.250 $1.975 plus 12% of the excess over $19.750 S 80.250 S171.050 $9.235 plus 22% of the excess over $80.250 $171.050 S326.600 $29,211 plus 24of the excess over $171 050 $326.600 S414,700 S66,543 plus 32 of the excess over $326.600 $414.700 $622,050 $94,735 plus 35% of the excess over $414,700 622,050 $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: S 0 S 17.100 10% of taxable income S 14.100 S 53.700 51.410 plus 12% of the excess over $14.100 S 53.700 S 85,500 S6,162 plus 229. of the excess over $53.700 S 85,500 $163,300 $13.158 plus 24c of the excess over $85,500 S163 300 S207 350 $31.830 plus 32. of the excess over $163,500 S207 350 SS18.00 $45 926 plus 35 of the excess nyer $207250