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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$,$ Jasmine, Michael, and Candice$).$ The Jacksons file a joint tax return. The couple received salary income of $$97,000$ and qualified business income of $$18,000$ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $$240,000$ and they sold it for $$290,000.$ The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$18,100$ of itemized deductions, and they had $$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.

$\backslash$table$[[$Description$,$Amount$],[(1)$ Gross income,$$,115,000],[(2)$ For AGI deductions,,$0],[(3)$ Adjusted gross income,$$,115,000],[(4)$ Standard deduction,$7,27,750],[(5)$ Itemized deductions,,$18,100],[(6)$ Greater of standard deduction or itemized deductions,,$27,750],[(7)$ 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,,$]]$

Individuals

Schedule X$-$Single

$\backslash$table$[[$If taxable income is over:,But not over:,The tax is:$],[$$$,0,$$$11,000,10\%$ of taxable income$],[$$$11,000,$$$44,725,$$$1,100$ plus $12\%$ of the excess over $$11,000$