Question

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 $100,000, 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 $3,550 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their minor children. However, because Candice is 18 years of age, the Jacksons may only claim the tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.) (1) Gross income (2) For AGI deductions 0selected answer correct (3) Adjusted gross income (4) Standard deduction 24,000selected answer correct (5) Itemized deductions 16,500selected answer correct (6) Greater of standard deductions or itemized deductionsselected answer correct 24,000selected answer correct (7) Deduction for qualified business income (8) Total deductions from AGI (9) Taxable income (10) Income tax liability (11) Other taxes $0selected answer correct (12) Total tax (13) Credits (14) Prepayments 3,550selected answer correct Taxes payables

Answer 1