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$2024$ Tax Rate Schedules

Individuals

Schedule X$-$Single

Schedule Y$-1-$Married Filing Jointly or Qualifying surviving spouse

Schedule Z$-$Head of Household

Schedule Y$-2-$Married Filing SeparatelyRequired 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$,$ Jasmine, Michael, and Candice$).$ The Jacksons file a joint tax return. The couple received salary income of

$$98,500$ and qualified business income of $$16,500$ from an investment in a partnership, and they sold their home this year.

They initially purchased the home three years ago for $$232,500$ and they sold it for $$282,500.$ The gain on the sale

qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$17,800$ of itemized deductions,

and they had $$4,000$ 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.$)$

Required:

c$.$ What would their taxable income be if their itemized deductions totaled $$35,300$ instead of $$17,800?$

d$.$ What would their taxable income be if they had $$0$ itemized deductions and $$8,600$ of for AGI deductions?

e$.$ Assume the original facts but now suppose the Jacksons also incurred a loss of $$5,650$ on the sale of some of their investment

assets. What effect does the $$5,650$ loss have on their taxable income?

f$.$ Assume the original facts but now suppose the Jacksons own investments that appreciated by $$10,000$ during the year. The

Jacksons believe the investments will continue to appreciate, so they did not sell the investments during this year. What is the

Jacksons' taxable income?

What would their taxable income be if their itemized deductions totaled $$35,300$ instead of $$17,800?$

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