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Question: please explain in detail 1 demarco and janine jackson have...

Question details

Please explain in detail

1) Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents. The couple recieved salary income of $175,000 qualified business income of $17,500 from an investment in a partnership, and they sold their home this year. they initially purchased the home three years aho for $237,500 and they sold it for $287,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. THe Jacksons incurred $18,000 of itemized deductions, and they had $4,3000 withheld from their paychecks for federal taxes. They are also allowed to claim a child tax credit for each of their childrem. However, because Candice is 18 years of age, the Jacksons may claim a child tax credit for other qualifying dependents for Candice.

A) What is the Jacksons' Taxable income, and what is their tax liability or (refund)?

Gross income $xxxx

For AGI deductions $xxxx

Adjusted gross income $xxxx

Standard Deduction $xxxx

Itemized deduction $xxxx

Greater of standard deductions or itemized deductions $xxxx

deduction for qualified business income $xxxx

Total deductions from AGI $xxxx

Taxable income $xxxx

Income Tax liabiliity $xxxx

Other Taxes $xxxx

Total Tax $xxxx

Credits $xxxx

Prepayments $xxxx

Tax Due or Refund $xxxx

B) What would their taxable income be if their itemized deductions totals $29,500 instead of $18,000?

Gross income $xxxx

For AGI deductions $xxxx

Adjusted gross income $xxxx

Standard deduction $xxxx

Itemized deductions $xxxx

Greater of standard deductions or itemized deduction $xxxx

Deduction for qualified business income $xxxx

Total deductions from AGI $xxxx

Taxable Income $xxxx

C) What would their taxable income be if they had $0 itemized deductions and $9,000 of for AGI deductions?

Gross income $xxx

For AGI deductions $xxxx

Adjusted gross income $xxxx

Standard deductions $xxxx

Itemized Deductions $xxxx

Greater of standard deductions of itemized deductions $xxxx

Deduction for business qualified income $xxxx

Totoal deductions from AGI $xxxx

Taxable income $xxxx

E) Assume the original facts but now suppose the Jacksons also incurred a loss of $5750 on the sale of some of their investments assets. What effect does the $5750 loss have on their taxable income?

Increase/decrease/no change $xxxx

F) Assume the original facts but now supposed 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?

I am not sure what the standard deduction is bu the tax rates include:

$0-$19,050 10% of taxable income

$19,050-$77,400 $1,905 plus 12% the excess over %19,050

$77,400-$165,000 $8,907 plus 22% of the excess over $77,400

$165,000-%315,000 $28,179 plus 24% of the excess over $165,000

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