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 Jr., Michael, and Candice). The couple received salary income of $100,000 and 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 $3,050 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. (Use the tax rate schedules.) a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? 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 Taxes payable Amount $ 110,000 0 $ 110,000 12,600 16,500 16,500 2,000 24,300 $ 69,200 (6,500) $ 798 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 Jr., Michael, and Candice). The couple received salary income of $100,000 and 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 $3,050 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. (Use the tax rate schedules.) Complete page 1, page 2, and Schedule 1 of the Jacksons' Form 1040 (use the most recent form available). Demarco and Janine Jackson's address is 19010 N.W. 135th Street, Miami, FL 33054. Social security numbers: Demarco: 123-45-6789 Son: Damarcus: 345-67-8901 Son: Michael : 567-89-0123 Janine: 234-56-7890 Daughter: Janine Jr: 456-78-9012 Daughter: Candice: 678-90-1234 Enter any non-financial Information, (e.g. Names, Addresses, social security numbers) EXACTLY as they appear and the order in which they appear in any given Information or Problem Statement. Input all the values as positive numbers. Use 2020 tax laws and 2019 tax form. Do not round your Intermediate calculations. Round final answers to the nearest whole dollar amount. Nelther Demarco nor Janine wish to contribute to the Presidential Election Campaign fund. Form 1040 for a couple Married Filing Jointly with four dependents. 1040 PG 1 1040 PG 2 Schedule 1 Page 1 of Form 1040. Use provided information and follow instructions on form. Department of the TreasuryIntemal Revenue Service (99) Form 1040 U.S. Individual Income Tax Return 2019 OMB No. 1545-0074 Filing Status Single Married filing jointly Married filing separately (MFS) Head of household (HOH) Check only If you checked the MFS box, enter the name of spouse. If you checked the HOH or QW box, enter the child's name if the qualifying person is one box a child but not your dependent. Your first name and middle initial Last name IRS Use Only Do not write or staple in this space - Qualifying widower) (OW) Your social security number Last name Your social security number I joint retum, spouse's first name and middle initial F Home address (number and street). If you have a P.O.box, see instructions. Apt. no. Presidential Election Campaign Check here if you, or your spouse if filing jointly, want 53 to go to this fund. Checking a box below will not change your tax or refund City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name Foreign province/statcounty Foreign postal code You Spouse If more than four dependents, see instructions and here Someone can daim: You as a dependent Your spouse as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual status alien You: Were born before January 2, 1955 Age/Blindness Are blind Spouse: Was born before January 2, 1955 Is blind Foreign country name Foreign province/statcounty Foreign postal code If more than four dependents, see instructions and here Your spouse as a dependent Someone can daim: You as a dependent Standard Deduction Spouse itemizes on a separate return or you were a dual-status alien Age/Blindness You: Were born before January 2, 1955 Dependents (see instructions): (1) First name Last name Are blind (2) Social security number Spouse: Was born before January 2, 1955 Is blind (3) Relationship to you (4) Vif qualifies for (see instructions Child tax credit Credit for other dependents 1 Wages, salaries, tips, etc. Attach Form(s) W-2 1 2a Tax-exempt interest 2a 2b 3a Qualified dividends b Taxable interest. Attach Sch. Bif required b Ordinary dividends. Attach Sch. Bif required b Taxable amount 3b 4a IRA distributions 4b 40 Taxable amount 4d - Pensions and annuities Sa Social security benefits b Taxable amount 5b B 7a Other income from Schedule 1, line 9 7a Standard Deduction for Single or Married filing separately, $12,200 . Married filing jointly or Qualifying widower) $24.400 Head of household $18,350 . If you checked any bax under Standard Deduction, see instructions. 7b Sa Add lines 1.25, 35, 46, 4, 5, 6 and 7a. This is your total income 8 a Adjustments to income from Schedule 1, line 22 b Subtract line Ba fram line 7b. This is your adjusted gross income 9 Standard deduction or itemized deductions (from Schedule A) 10 Qualified business income deduction. Attach Form 995 or Farm 8995-A ab 9 10 11a Add lines 9 and 10 11a 11b b Taxable income. Subtract line 11a from line &b. If zero or less, enter-O- For Dlaclosure, Privacy Act, and Paperwork Reduction Act Notice. 29e separate instructiona. Cat No. 11320B Form 1040 (2019) Page 2 of Form 1040. Some information does not carry over from Page 1. Form 1040 (2019) Page 2 12b 13 15 A 16 17 18a . If you have a qualifying child attach Sch. CIC . If you have nontaxable combat pays instructions. 12a Tax (see inst.) Check if any from Form(s) (1)8814 12) 4972 12a b Add Schedule 2 line 3, and line 12a and enter the total 13a Child tax credit or credit for other dependents 13a b Add Schedule 3 line 7, and line 13a and enter the total 14 Subtract line 13b from line 12b. If zero ar less, enter-O- 15 Other taxes, including self-employment tax, from Schedule 2 line 10 16 Add lines 14 and 15. This is your total tax 17 Federal income tax withheld from Farms W-2 and 1099 18 Other payments and refundable credits: a Earned income credit (EIC) b Additional child tax credit Attach Schedule 8812 18b c American apportunity credit from Form 8863, line 8 18c d Schedule 3, line 14 18d e Add lines 1&a through 18d. These are your total other payments and refundable credits 19 Add lines 17 and 18e. These are your total payments 20 If line 19 is more than line 16, subtract line 16 from line 19. This is the amount you overpaid 21a Amount of line 20 you want refunded to you. If Farm 8888 is attached, check here Routing number c Type: Checking Savings Account number 22 Amount of line 20 you want applied to your 2020 estimated tax 22 23 Amount you owe. Subtract line 19 from line 16. For details on how to pay, see instructions 24 Estimated tax penalty (see instructions) Do you want to allow another person (ather than your paid preparer) to discuss this return with the IRS? See instructions. 18e 19 20 Refund 21a Direct deposit? See instructions. 23 24 Amount You Owe Third Party Designee DO Yes. Complete below. No 24 Estimated lax penalty (See instructions Do you want to allow another person (ather than your paid preparer) to discuss this return with the IRS? See instructions. Yes. Complete below. No Personal identification Third Party Designee (Other than paid preparer) Sign Here Designee's rame Phone no. number (PIN) Joint return? See Instructions Keep a copy for your recorde 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 (ather than taxpayer) is based on all information of which preparer has any knowledge. if the IRS sent you an identity Your signature Date Your occupation Protection PIN, enbar it here (see inst.) If the IRS sent your spouse in Spouse's signature. If a joint return, both must sign. Date Spouse's occupation identity Protection PIN, enter it here (see inst.) Phone no Email address Preparer's signature Date PTIN Preparer's name Check if: Paid 3rd Party Designer Preparer Phone no. Self-employed Firm's name Use Only Firm's EIN Firm's address Form 1040 (2015) THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. O 2020 McGraw-Hill Education. Schedule 1 of Form 1040. SCHEDULE 1 (Form 1040 or 1040-SR) Additional Income and Adjustments to Income OMB No. 1545-0074 2019 Department of the Treasury Internal Revenue Service Name(s) shown on Form 1040 or 1040-SR Attach to Form 1040 or 1040-SR. Go to www.irs.gov/Form1040 for instructions and the latest information. Attachment Sequence No. 01 Your social security number Yes D No 1 2a b At any time during 2019, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency? Parti Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received Date of original divorce or separation agreement (see instructions) 3 Business income or loss). Attach Schedule C 4 Other gains or losses). Allach Farm 4797 5 Rental real estate, royalties, partnerships, Scorporations, trusts, etc. Attach Schedule E 6 Farm income or loss). Attach Schedule F 7 Unemployment compensation 8 Other income. List type and amount 3 4 5 S 7 9 Part II Combine lines 1 through 8. Enter here and on Form 1040 or 1040-SR, line 7a Adjustments to Income Educator expenses 10 10 11 Certain business expenses af reservists, performing artists, and fee-basis gavernment officials. Attach Form 2106 11 12 12 13 Health savings account deduction. Allach Farm 8889 Moving expenses for members of the Armed Forces. Attach Farm 3903 Deductible part of self-employment tax. Attach Schedule SE 13 14 14 Part II Adjustments to Income 10 Educator expenses 10 11 Certain business expenses af reservists, performing artists, and fee-basis gavernment officials. Attach Form 2106 11 12 12 13 13 14 I 14 15 15 Health savings account deduction. Allach Form 88 89 Moving expenses for members of the Armed Forces. Attach Form 3903 Deductible part of self-employment tax. Attach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings Alimony paid Recipient's SSN 16 16 17 17 18a 18a b Date of original divorce or separation agreement (see instructions) 19 IRA deduction 19 20 Student loan interest deduction 20 21 Reserved for future use 21 22 Add lines 10 through 21. These are your adjustments to income. Enter here and an Form 1040 or 1040 SR, line 8a 22 For Paperwork Reduction Act Notice, 299 your tax return Instructions. Cat. No. 71475F Schedule 1 (Form 1040 or 1040-SR) 2019 THIS FORM IS A SIMULATION OF AN OFFICIAL U.S. TAX FORM. IT IS NOT THE OFFICIAL FORM ITSELF. DO NOT USE THIS FORM FOR TAX FILINGS OR FOR ANY PURPOSE OTHER THAN EDUCATIONAL. 2020 McGraw-Hill Education