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, 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 claim a child tax credit for other qualifying dependents for Candice. (2018)
Complete the first 2 pages of the Jacksons' Form 1040 (use the most recent form available).
Particulars Amounts 1 Gross Income Salary 100,000 Gain on House Sale (excluded) $ 10,000 Qualified Business Income 2 For AGI Deductions 3 Adjusted Gross Income (1-2) 4 Standard Deduction (Married filing jointly) 5 Itemized Deduction 6 Greater between D & BE 7 Qualified Business Income Deduction($10,000x20% 8 From AGI Deductions $ 110,000 $ 24,000 16,500 $ 24,000 $2,000 $26,000 $84,000 Taxable Income (3-6-7) 9 Income Tax Liability ((74,000-19,050)x12%+1,905) 0 Other Taxes 11 Total Tax (9+10) 12 Credits (3 children (3x2,000)+Candice(500)) 13 Prepayments 14 Tax Refund with Return (11+12+13) $ 8,499 $8,499 $ (6,500) $ (3,550) $ (1,551) (99) Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Filing status:Single Your first name and initial Married filing jointly Married filing separately Head of household Qualifying widowler) Last name Your social security number DEMARCO Your standard deduction: Someone can c arm you as a dependent You were born before January 2 1954 You are blind If joint return, spouse's first name and initial JANINE Spouse standard deduction:Someone can claim your spouse as a dependent Spouse was bom before January 2, 1954Full-year health care coverage Last name Spouse's social security number Spouse is blind Spouse temizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. or exempt (see inst.) (see inst.) You Spouse If more than four dependents, Apt. no. Presidential Election Campaign City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. see inst. and here Dependents (see instructions): 2) Social security umber (3) Relationship to you 4)if qualifies for (see inst.y (1) First name Last name Child tax credit Credit for other dependents DEMARCUS JANINE MICHAEL CANDICE Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Here Joint return? See instructions. Keep a copy for your records. If the IRS sent you an Identity Protection PIN, enter it here (see inst Your signature Spouse's signature. If a joint return, both must sign. Date Preparer's name Date Your occupation Spouse's occupation H the IRS sent you an Identity Protection PIN, enter it Preparer's signature PTIN Firm's EIN Check if: Paid Preparer 3rd Party Designee Phone no. Selr-employed Use Only Firm'sname Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018 Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Tax-exempt interest .. b Taxable interest b Ordinary dividends b Taxable amount. b Taxable amount . . 2a 2a Attach Formis W-2. Abo attch 3a Qualified dividends. . Formis) W-2G and 099-R if tax was4a RAs, pensions, and annuities 2b 3b 4b 4a 5a Social security benefits 6 Total income. Add ines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, 10000 10000 2400 subtract Schedule 1, line 36, from line 6 Standard Deduction for- . 8 Standard deduction or itemized deductions (from Schedule A). . .. 8 Single or married fling separately,9Qalified business income deduction (see instructions). . $12.000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- 84000 Married filing jointly or Qualityng a Tax(see inst.) b Add any amount from Schedule 2 and check here .. . (check if any fromFomis) 8814 2Fom 4972 3 widower) $24,000 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter -0- 849 500 989 6500 bAdd any amount from Schedule 3 and check here 12 13 14 15 16 . Head of $18,000 any box under deduction, e If you checked 14 Other taxes. Attach Schedule 4 15 Total tax. Add lines 13 and 14 16 Federal income tax withheld from Forms W-2 and 1099 7 Refundable credits: a EIC (see inst.) 3550 see instructions. b Sch. 8812 c Form 8863 Add any amount from Schedule 5 Add lines 16 and 17. These are your total payments I line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 17 18 19 20a 3550 1551 18 19 20a Direct deposi? b Routing number Refund Type:Checking Savings See instructions. d Account number 21 22 Amount of line 19 you want applied to your 2019 estimated tax Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 21 . Amount You Owe 23 Go to www.irs.govForm1040 for instructions and the latest information. Form 1040 (2018) Particulars Amounts 1 Gross Income Salary 100,000 Gain on House Sale (excluded) $ 10,000 Qualified Business Income 2 For AGI Deductions 3 Adjusted Gross Income (1-2) 4 Standard Deduction (Married filing jointly) 5 Itemized Deduction 6 Greater between D & BE 7 Qualified Business Income Deduction($10,000x20% 8 From AGI Deductions $ 110,000 $ 24,000 16,500 $ 24,000 $2,000 $26,000 $84,000 Taxable Income (3-6-7) 9 Income Tax Liability ((74,000-19,050)x12%+1,905) 0 Other Taxes 11 Total Tax (9+10) 12 Credits (3 children (3x2,000)+Candice(500)) 13 Prepayments 14 Tax Refund with Return (11+12+13) $ 8,499 $8,499 $ (6,500) $ (3,550) $ (1,551) (99) Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space Filing status:Single Your first name and initial Married filing jointly Married filing separately Head of household Qualifying widowler) Last name Your social security number DEMARCO Your standard deduction: Someone can c arm you as a dependent You were born before January 2 1954 You are blind If joint return, spouse's first name and initial JANINE Spouse standard deduction:Someone can claim your spouse as a dependent Spouse was bom before January 2, 1954Full-year health care coverage Last name Spouse's social security number Spouse is blind Spouse temizes on a separate return or you were dual-status alien Home address (number and street). If you have a P.O. box, see instructions. or exempt (see inst.) (see inst.) You Spouse If more than four dependents, Apt. no. Presidential Election Campaign City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. see inst. and here Dependents (see instructions): 2) Social security umber (3) Relationship to you 4)if qualifies for (see inst.y (1) First name Last name Child tax credit Credit for other dependents DEMARCUS JANINE MICHAEL CANDICE Sign Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge Here Joint return? See instructions. Keep a copy for your records. If the IRS sent you an Identity Protection PIN, enter it here (see inst Your signature Spouse's signature. If a joint return, both must sign. Date Preparer's name Date Your occupation Spouse's occupation H the IRS sent you an Identity Protection PIN, enter it Preparer's signature PTIN Firm's EIN Check if: Paid Preparer 3rd Party Designee Phone no. Selr-employed Use Only Firm'sname Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2018 Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Form(s) W-2 Tax-exempt interest .. b Taxable interest b Ordinary dividends b Taxable amount. b Taxable amount . . 2a 2a Attach Formis W-2. Abo attch 3a Qualified dividends. . Formis) W-2G and 099-R if tax was4a RAs, pensions, and annuities 2b 3b 4b 4a 5a Social security benefits 6 Total income. Add ines 1 through 5. Add any amount from Schedule 1, line 22 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, 10000 10000 2400 subtract Schedule 1, line 36, from line 6 Standard Deduction for- . 8 Standard deduction or itemized deductions (from Schedule A). . .. 8 Single or married fling separately,9Qalified business income deduction (see instructions). . $12.000 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter -0- 84000 Married filing jointly or Qualityng a Tax(see inst.) b Add any amount from Schedule 2 and check here .. . (check if any fromFomis) 8814 2Fom 4972 3 widower) $24,000 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter -0- 849 500 989 6500 bAdd any amount from Schedule 3 and check here 12 13 14 15 16 . Head of $18,000 any box under deduction, e If you checked 14 Other taxes. Attach Schedule 4 15 Total tax. Add lines 13 and 14 16 Federal income tax withheld from Forms W-2 and 1099 7 Refundable credits: a EIC (see inst.) 3550 see instructions. b Sch. 8812 c Form 8863 Add any amount from Schedule 5 Add lines 16 and 17. These are your total payments I line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid Amount of line 19 you want refunded to you. If Form 8888 is attached, check here 17 18 19 20a 3550 1551 18 19 20a Direct deposi? b Routing number Refund Type:Checking Savings See instructions. d Account number 21 22 Amount of line 19 you want applied to your 2019 estimated tax Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 21 . Amount You Owe 23 Go to www.irs.govForm1040 for instructions and the latest information. Form 1040 (2018)
