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[ The following information applies to the questions displayed below. ] Demarco and Janine Jackson have been married for 2 0 years and have four

[The following information applies to the questions displayed below.]
Demarco and Janine Jackson have been married for 20 years and have four children (no children under age 6 at year-
end) who qualify as their dependents (Damarcus, Jasmine, 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
(no charitable contributions), and they had $1,000 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.)
2021 Tax Rate Schedules
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
Schedule Z-Head of Household
Schedule Y-2-Married Filing Separately
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