1)Required information [The following information applies to the questions displ
ID: 2332447 • Letter: 1
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1)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, Michael, and Candice). The couple received salary income of $187,000, qualified business income of $20,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $252,500 and they sold it for $302,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,600 of itemized deductions, and they had $4,600 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)? (Do not round intermediate calculation. Round "Income tax liability", "Total tax", "Taxes payable or Refund due" to 2 decimal places.)
2)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, Michael, and Candice). The couple received salary income of $187,000, qualified business income of $20,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $252,500 and they sold it for $302,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,600 of itemized deductions, and they had $4,600 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.)
Download the Tax Form and enter the required values in the appropriate fields. Complete the first two pages of the Jackson's Form 1040 ( use the most recent from available).
3)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, Michael, and Candice). The couple received salary income of $187,000, qualified business income of $20,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $252,500 and they sold it for $302,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,600 of itemized deductions, and they had $4,600 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.)
c. What would their taxable income be if their itemized deductions totaled $30,100 instead of $18,600?
Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save."
description amount 1 gross income 2 for AGI deduction 3 Adjusted gross income 4 standard deduction 5 itemized deduction 6 7 deduction for qualified business income 8 total deductionfrom AGI 9 taxable income 10 inncome tax liability 11 other taxes 12 total tax 13 credits 14 prepaymentsExplanation / Answer
1.a.
Gross income
280700
Less: AGI Deduction
(0)
Adjusted Gross Income
280700
Less: Standard Deduction
(50000)
Less: Itemized Deduction
(18600)
Less: Deduction for qualified business income
(20500)
Total deduction from AGI
(89100)
Taxable Income
191600
Income Tax Liability
45984
Other Taxes
0
Total Tax
45984
Credits
0
Prepayments
4600
3.c.
Gross income
280700
Less: AGI Deduction
(0)
Adjusted Gross Income
280700
Less: Standard Deduction
(50000)
Less: Itemized Deduction
(1400)
Less: Deduction for qualified business income
(20500)
Total deduction from AGI
(71900)
Taxable Income
208800
Income Tax Liability
50112
Other Taxes
0
Total Tax
43089
Credits
0
Prepayments
4600
Gross income
280700
Less: AGI Deduction
(0)
Adjusted Gross Income
280700
Less: Standard Deduction
(50000)
Less: Itemized Deduction
(18600)
Less: Deduction for qualified business income
(20500)
Total deduction from AGI
(89100)
Taxable Income
191600
Income Tax Liability
45984
Other Taxes
0
Total Tax
45984
Credits
0
Prepayments
4600
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