Demarco and Janine Jackson have been married for 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
$ and qualified business income of $ from an investment in a partnership, and they sold their home this
year. They initially purchased the home three years ago for $ and they sold it for $ The gain on the sale
qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $ of itemized deductions,
and they had $ 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 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.
a What is the Jacksons taxable income, and what is their tax liability or refund
Note: Do not round intermediate calculations.
