Required information $2024$ Tax Rate Schedules

Individuals

Schedule X$-$Single

Schedule Y$-1-$Married Filing Jointly or Qualifying surviving spouse

Schedule Z$-$Head of Household

Schedule Y$-2-$Married Filing Separately

$[$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$,$ Jasmine, Michael, and Candice$).$ The Jacksons file a joint tax return. The couple received salary income of $$98,500$ and qualified business income of $$16,500$ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $$232,500$ and they sold it for $$282,500.$ The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$17,800$ of itemized deductions, and they had $$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.$)$

a$.$ What is the Jacksons' taxable income, and what is their tax liability or $($refund$)?$

Note: Do not round intermediate calculations.

Answer is not complete.

$\backslash$table$[[$Description$,$Amount$],[(1)$ Gross income,$$115,000],[(2)$ For AGI deductions,$0],[(3)$ Adjusted gross income,$$115,000],[(4)$ Standard deduction,$],[(5)$ Itemized deductions,$],[(6)$ Greater of standard deduction 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 refund with tax return,$]]$