Please don't give image format Required informationComprehensive Problem 4-57 (LO 4-1, LO 4-2, LO 4-3) (Algo)[The following information applies to the questions displayed below.]Demarco and Janine Jackson have been married for 20 years and have four children (no children under age 6 atyear-end) who qualify as their dependents (Damarcus, Jasmine, Michael, and Candice). The couple received salaryincome of $96,000 and qualified business income of $19,000 from an investment in a partnership, and they soldtheir home this year. They initially purchased the home three years ago for $245,000 and they sold it for $295,000.The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,300of itemized deductions, and they had $4,000 withheld from their paychecks for federal taxes. They are also allowedto claim a child tax credit for each of their children. However, because Candice was 18 years of age at year end, theJacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)Show Transcribed Texta. What is the Jacksons' taxable income, and what is their tax liability or (refund)?Note: Do not round intermediate calculations.(1) Gross income(2) For AGI deductions(3) Adjusted gross income(4) Standard deduction(5) Itemized deductionsDescription(7) Deduction for qualified business income(8) Total deductions from AGI(9) Taxable income(10) Income tax liability(11) Other taxes(12) Total tax(13) Credits(14) PrepaymentsTax refund with tax returnĈ$$$Amount115,00050,00065,00018,3003,307 2022 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over: But not over:$0$ 10,275$ 41,775$ 89,075$ 170,050$ 215,950$ 539,900$ 10,275$ 41,775$ 89,075$170,050$215,950$539,900Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over: But not over:$0$ 20,550$ 83,550$ 178,150$ 340,100$ 431,900$ 647,850Schedule Z-Head of HouseholdIf taxable income is over: But not over:$0$ 14,650$ 14,650$ 55,900$ 55,900$ 89,050$ 89,050$ 170,050$215,950$ 170,050$ 215,950$539,900$ 539,900$0$ 10,275Schedule Y-2-Married Filing SeparatelyIf taxable income is over: But not over:$ 10,275$ 41,775$ 89,075$170,050$215,950$323,925$ 41,775$ 89,075$ 170,050$ 215,950$ 323,925The tax is:10% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$162,718 plus 37% of the excess over $539,900$ 20,55010% of taxable income$ 83,550$ 178,150$340,100$2,055 plus 12% of the excess over $20,550$9,615 plus 22% of the excess over $83,550$30,427 plus 24% of the excess over $178,150$431,900 $69,295 plus 32% of the excess over $340,100$647,850 $98,671 plus 35% of the excess over $431,900$174,253.50 plus 37% of the excess over $647,850The tax is:The tax is:10% of taxable income$1,465 plus 12% of the excess over $14,650$6,415 plus 22% of the excess over $55,900$13,708 plus 24% of the excess over $89,050$33,148 plus 32% of the excess over $170,050$47,836 plus 35% of the excess over $215,950$161,218.50 plus 37% of the excess over $539,900The tax is:10% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$87,126.75 plus 37% of the excess over $323,925

Income tax is compulsory for all persons who cross a tax-free limit of income from all sources.…

Required information Comprehensive Problem 4-57 (LO 4-1, LO 4-2, LO 4-3) (Algo) [The following information applies to the questions displayed below.] 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 $96,000 and qualified business income of $19,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $245,000 and they sold it for $295,000. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,300 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.) Show Transcribed Text a. What is the Jacksons' taxable income, and what is their tax liability or (refund)? Note: Do not round intermediate calculations. (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions Description (7) Deduction for qualified business income (8) Total deductions from AGI (9) Taxable income (10) Income tax liability (11) Other taxes (12) Total tax (13) Credits (14) Prepayments Tax refund with tax return Amount $ $ $ 115,000 50,000 65,000 18,300 3,307

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter13: Tax Credits And Payment Procedures

Section: Chapter Questions

Problem 40P