Chapter $4$ Homework

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Demarco and Janine Jackson have been marrled 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 recelved salary income of $$97,000$ and qualified business income of $$18,000$ from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $$240,000$ and they sold it for $$290,000.$ The gain on the sale

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$1\mathrm{.}25$ points qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $$18,100$ of itemized deductions, and they had $$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.$)$