PLEASE ANSWER ALL QUESTIONS INCLUDING THE 1040 2018 TAX FORM.
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 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 minor children. However, because Candice is 18 years of age, the Jacksons may only claim the tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) 2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,525 10% of taxable income $ 9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $500,000 $45,689.50 plus 35% of the excess over $200,000 $500,000 $150,689.50 plus 37% of the excess over $500,000 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,050 10% of taxable income $ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050 $ 77,400 $165,000 $8,907 plus 22% of the excess over $77,400 $165,000 $315,000 $28,179 plus 24% of the excess over $165,000 $315,000 $400,000 $64,179 plus 32% of the excess over $315,000 $400,000 $600,000 $91,379 plus 35% of the excess over $400,000 $600,000 $161,379 plus 37% of the excess over $600,000 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,600 10% of taxable income $ 13,600 $ 51,800 $1,360 plus 12% of the excess over $13,600 $ 51,800 $ 82,500 $5,944 plus 22% of the excess over $51,800 $ 82,500 $157,500 $12,698 plus 24% of the excess over $82,500 $157,500 $200,000 $30,698 plus 32% of the excess over $157,500 $200,000 $500,000 $44,298 plus 35% of the excess over $200,000 $500,000 $149,298 plus 37% of the excess over $500,000 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9,525 10% of taxable income $ 9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $300,000 $45,689.50 plus 35% of the excess over $200,000 $300,000 $80,689.50 plus 37% of the excess over $300,000 a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? 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 Refund due Complete pages 1 and 2 of the Jacksons' Form 1040. Demarco and Janine Jackson's address is 1001 N.W. 93 Street, Miami, FL 33168. Social security numbers: Demarco: 123-45-6789 Son: Damarcus: 345-67-8901 Son: Michael : 567-89-0111 Janine: 234-56-7890 Daughter: Janine: 456-78-9010 Daughter: Candice: 678-90-1111 Enter any non-financial information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear in any given information or Problem Statement. (Input all the values as positive numbers. Use 2018 tax laws) (Do not round your intermediate calculations. Round final answers to the nearest whole dollar amount.) 1040 for a couple Married Filing Jointly. 1040 PG 1 1040 PG 2 Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 2018 Department of the Treasury - Internal Revenue Service (99) U.S. Individual Income Tax Return Single Married filing jointly OMB No. 1545-0074 Head of household IRS Use Only - Do not write in this O Qualifying widow(er) Filing status: Married filing separately Last name Your first name and initial Your social security numb Page 1 of Form 1040. Use provided information and follow instructions on form. Form 1040 2018 Department of the Treasury-Internal Revenue Service (99) U.S. Individual Income Tax Return Single Married filing jointly OMB No. 1545-0074 Head of household IRS Use Only - Do not write in thi Qualifying widow(er) Married filing separately Filing status: Your first name and initial Last name Your social security numt (Enter as xxx-xx-xxxx) Demarco Your standard deduction: Someone can claim you as a dependent You were born before January 2, 1954 You are blind Spouse or qualifying person's first name and initial (see inst.) Last name Spouse's social security nu (Enter as xxx-XX-xxxx) Spouse standard deduction Someone can claim your spouse as a dependent Spouse is blind Spouse was born before January 2, 1954 Spouse itemizes on a separate return or you were dual-status alien Full-year health care coverag (see inst.) Home address (number and street). If you have a P.O. box, see instructions. Apt. no. Presidential Election Camp Check here if you want $3 to go to this City, town or post office, state, and ZIP code. you have a foreign address, attach Schedule 6. You If more than four dependents, see i Dependents (see instructions): (1) First name (2) Social security number (3) Relationship to you (4) if child under age 17 qualifies fc Child tax credit. Crec de Last name Dependents (see instructions): (1) First name (2) Social security number (3) Relationship to you (4) if child under age 17 qualifies fo Child tax credit. Crec de Last name OOOO OOOO 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, Sign Here correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Date Your occupation If the IRS sent you an Identity Protection here (see inst.) Joint return? See instructions Keep a copy for your records. Spouse's signature. If a joint return, both must sign. Date Spouse's occupation If the IRS sent you an Identity Protection here (see inst.) Preparer's name Preparer's signature PTIN Firm's EIN Check it: Paid Preparer Use Only 3rd P Firm's name Phone no. Self- Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B FC Page 2 1 2b 3b 4b 5b 6 7 8 9 Form 1040 (2018) 1 Wages, salaries, tips, etc. Attach Form(s) W-2 2a Tax-exempt interest 2a b Taxable interest Attach Form(s) W-2. 3a Qualified dividends Also attach Form(s) b Ordinary dividends W-2G and 1099-R if 4a IRAs, pensions, and annuities 4a b Taxable amount tax was withheld. 5a Social security benefits 5a b Taxable amount 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 Standard deduction for- 7 Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, subtract Schedule 1, Single or Married filing line 36, from line 6 6 separately, $12,000 8 Standard deduction or itemized deductions (from Schedule A) 9 Qualified business income deduction (see instructions) 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- Married filing jointly or Qualifying widow(er), 11 a Tax (see inst.) (check if any from: 1. Form(s) 8814 2. Form 4972 $24.000 3. b Add any amount from Schedule 2 and check here Head of household, 12 a Child tax credit/credit for other dependents $18,000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter-O- 14 Other taxes. Attach Schedule 4 If you checked any box 15 Total tax. Add lines 13 and 14 under Standard 16 Federal income tax withheld from Forms W-2 and 1099 deduction, see instructions. 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 d Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. 10 0 11 12 13 0 14 15 0 16 17 18 0 10 0 2. Form 4972 O O 11 12 13 0 14 15 0 16 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-O- . Married filing jointly or Qualifying widow(er). 11 a Tax (see inst.) (check if any from: 1. Form(s) 8814 $24,000 3. > b Add any amount from Schedule 2 and check here b Head of household, 12 a Child tax credit/credit for other dependents $18,000 b Add any amount from Schedule 3 and check here 13 Subtract line 12 from line 11. If zero or less, enter - - 14 Other taxes. Attach Schedule 4 . If you checked any box 15 Total tax. Add lines 13 and 14 under Standard 16 Federal income tax withheld from Forms W-2 and 1099 deduction, see instructions. 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 d Add any amount from Schedule 5 18 Add lines 16 and 17. These are your total payments. Refund 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid 20a Amount of line 19 you want refunded to you. If Form 8888 is attached, check here Direct deposit? See b Routing number c Type: Checking instructions. d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount You Owe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. 17 18 0 19 20a Savings 22 0 Form 1040 (2018)
