Comprehensive Problem 4-57 (LO 4-1, LO 4-2, LO 4-3) (Static) Skip to question [The following information applies to the questions displayed below.] Demarco and Janine Jackson have been married 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 received salary income of $105,000 and qualified business income of $10,000 from an investment in a partnership, 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 $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.) Comprehensive Problem 4-57 Part-a (Static) a. What is the Jacksons taxable income, and what is their tax liability or (refund)?

IndividualsSchedule X-Single

If taxable incomeis over:	But not over:	The tax is:
$ 0	$11,600	10% of taxable income
$ 11,600	$ 47,150	$1,160 plus 12% of the excess over $11,600
$ 47,150	$ 100,525	$5,426 plus 22% of the excess over $47,150
$ 100,525	$ 191,950	$17,168.50 plus 24% of the excess over $100,525
$ 191,950	$ 243,725	$39,110.50 plus 32% of the excess over $191,950
$ 243,725	$ 609,350	$55,678.50 plus 35% of the excess over $243,725
$ 609,350		$183,647.25 plus 37% of the excess over $609,350

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over:	But not over:	The tax is:
$ 0	$ 23,200	10% of taxable income
$ 23,200	$ 94,300	$2,320 plus 12% of the excess over $23,200
$ 94,300	$ 201,050	$10,852 plus 22% of the excess over $94,300
$ 201,050	$ 383,900	$34,337 plus 24% of the excess over $201,050
$ 383,900	$ 487,450	$78,221 plus 32% of the excess over $383,900
$ 487,450	$ 731,200	$111,357 plus 35% of the excess over $487,450
$ 731,200		$196,669.50 plus 37% of the excess over $731,200

Schedule Z-Head of Household

If taxable incomeis over:	But not over:	The tax is:
$ 0	$ 16,550	10% of taxable income
$ 16,550	$ 63,100	$1,655 plus 12% of the excess over $16,550
$ 63,100	$ 100,500	$7,241 plus 22% of the excess over $63,100
$ 100,500	$ 191,950	$15,469 plus 24% of the excess over $100,500
$ 191,950	$ 243,700	$37,417 plus 32% of the excess over $191,950
$ 243,700	$ 609,350	$53,977 plus 35% of the excess over $243,700
$ 609,350		$181,954.50 plus 37% of the excess over $609,350

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 11,600	10% of taxable income
$ 11,600	$ 47,150	$1,160 plus 12% of the excess over $11,600
$ 47,150	$ 100,525	$5,426 plus 22% of the excess over $47,150
$ 100,525	$ 191,950	$17,168.50 plus 24% of the excess over $100,525
$ 191,950	$ 243,725	$39,110.50 plus 32% of the excess over $191,950
$ 243,725	$ 365,600	$55,678.50 plus 35% of the excess over $243,725
$ 365,600		$98,334.75 plus 37% of the excess over $365,600