Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $96,000 and qualified business income of $19,000 from an investment in a partnership, and they sold their home this year.
They initially purchased the home three years ago for $245,000 and they sold it for $295,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,300 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.)
Required:
- What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300?
- What would their taxable income be if they had $0 itemized deductions and $9,600 of for AGI deductions?
- Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income?
- Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income?
PLEASE USE THIS INFORMATION TO FILL OUT THOSE 4 IMAGES QUESTIONS. (REQUIRED C, REQUIRED D, REQUIRED E AND REQUIRED F).
Required information [The following information applies to the questions displayed below.] Demarco and Janine Jackson have been married for 20 years and have four children who quallfy as their dependents (Damarcus, Jasmine, Michael, and Candice). The Jacksons file a joint tax return. The couple received salary income of $96,000 and qualified business income of $19,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $245,000 and they sold it for $295,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,300 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.) Required: c. What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? d. What would their taxable income be if they had $0 itemized deductions and $9,600 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons belleve the investments will continue to appreclate, so they did not sell the investments during this year. What is the Jacksons' taxable income? 2023 Tax Rate Schedules Individuals Srhedule X.Sincle Schedule Y-2-Married Filing Separately \begin{tabular}{|c|c|c|} \hline If taxable income is over: & But not over: & \multicolumn{1}{|c|}{ The tax is: } \\ \hline$10 & $11,000 & 10% of taxable income \\ \hline$11,000 & $44,725 & $1,100 plus 12% of the excess over $11,000 \\ \hline$44,725 & $95,375 & $5,147 plus 22% of the excess over $44,725 \\ \hline$95,375 & $182,100 & $16,290 plus 24% of the excess over $95,375 \\ \hline$182,100 & $231,250 & $37,104 plus 32% of the excess over $182,100 \\ \hline$346,875 & $346,875 & $52,832 plus 35% of the excess over $231,250 \\ \hline & - & $93,300.75 plus 37% of the excess over $346,875 \\ \hline \end{tabular} c. What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? d. What would their taxable income be if they had $0 itemized deductions and $9,600 of for AG deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? c. What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? d. What would their taxable income be if they had $0 itemized deductions and $9,600 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? What would their taxable income be if they had $0 itemized deductions and $9,600 of for AGt deductions? c. What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? d. What would their taxable income be if they had $0 itemized deductions and $9,600 of for AG deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investment assets. What effect does the $5,900 loss have on their taxable income? Required: c. What would their taxable income be if their itemized deductions totaled $29,800 instead of $18,300 ? d. What would their taxable income be if they had $0 itemized deductions and $9,600 of for AGI deductions? e. Assume the original facts but now suppose the Jacksons also incurred a loss of $5,900 on the sale of some of their investme assets. What effect does the $5,900 loss have on their taxable income? f. Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income? Assume the original facts but now suppose the Jacksons own investments that appreciated by $10,000 during the year. The Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the Jacksons' taxable income
