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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 $$102,000$ and qualified business income of $$13,000$ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $$215,000$ and they sold it for $$265,000.$ The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$17,100$ of itemized deductions, and they had $$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.$)$ Schedule Y$-1-$Married Filing Jointly or Qualifying Widow$($er$)$

If taxable income is over: But not over: The tax is:

$ $0$ $ $20,55010\%$ of taxable income

$ $20,550$ $ $83,550$ $$2,055$ plus $12\%$ of the excess over $$20,550$

$ $83,550$ $ $178,150$ $$9,615$ plus $22\%$ of the excess over $$83,550$

$ $178,150$ $ $340,100$ $$30,427$ plus $24\%$ of the excess over $$178,150$

$ $340,100$ $ $431,900$ $$69,295$ plus $32\%$ of the excess over $$340,100$

$ $431,900$ $ $647,850$ $$98,671$ plus $35\%$ of the excess over $$431,900$

$ $647,850$ $$174,253\mathrm{.}50$ plus $37\%$ of the excess over $$647,850$Required information

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.

Cat. No$.11320$B Form $1040(2021)$

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