$[$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.$)$

$\backslash$table$[[$Description$,$Amount$],[(1)$ Gross income,$$],[(2)$ For AGI deductions,$111,000],[(3)$ Adjusted gross income,$0],[(4)$ Standard deduction,$111,000],[(5)$ Itemized deductions,$24,800],[(6)$ Greater of standard deduction or itemized deductions,$18,500],[(7)$ Deduction for qualified business income,$24,800],[(8)$ Total deductions from AGI,$2,000],[(9)$ Taxable income,$26,800],[(10)$ Income tax liability,$84,200],[(11)$ Other taxes,$$,972],[(12)$ Total tax,$$],[(13)$ Credits,$$],[(14)$ Prepayments,$9,972],[$Tax due with tax return,$6,500]]$

$2021$ Tax Rate Schedules

Schedule Y$-1-$Married Filing Jointly or Qualifying Widow$($er$)$

Schedule Z$-$Head of Household

Schedule Y$-2-$Married Filing Separately

w$2$ form from IRS website