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, 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 $6,250 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their children.
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.)
1. Gross Income=
2. For AGI Deductions
3. Adjusted Gross Income
4. Standard Deduction
5. Itemized Deductions
6. Greater or Lesser of standard deductions or itemized deductions =
7. Personal and Dependency exemptions
8. Total Deductions from AGI
9. Taxable Income
10. Income tax liability
11. Other taxes
12. Total Tax
13. Credits
14. Prepayments
15. Refund due or Taxes Payable