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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 $187,000, qualified business income of $20,500 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $252,500 and they sold it for $302,500. The gain on the sale qualified for the exclusion from the sale of a principal residence. The Jacksons incurred $18,600 of itemized deductions, and they had $4,600 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 is 18 years of age, the Jacksons may claim a child tax credit for other qualifying dependents for Candice. (Use the tax rate schedules.)

Download the Tax Form and enter the required values in the appropriate fields. Complete the first two pages of the Jackson's Form 1040 ( use the most recent from available).

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1040 Department of the Treasury—Internal Revenue Service (99) U.S. Individual Income Tax Return 2017 OMB No. 1545-0074 IRS Use Only—Do not write or staple in this space. For the year Jan. 1–Dec. 31, 2017, or other tax year beginning , 2017, ending , 20 See separate instructions. Your first name and initial Last name Your social security number
If a joint return, spouse’s first name and initial Last name Spouse’s social security number
▲ Make sure the SSN(s) above and on line 6c are correct.
Home address (number and street). If you have a P.O. box, see instructions. Apt. no.
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Foreign country name                                        Foreign province/state/county                        Foreign postal code  
Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or refund. You Spouse
Filing Status
Check only one box.
1 Single 2 Married filing jointly (even if only one had income) 3 Married filing separately. Enter spouse’s SSN above and full name here. ▶
4 Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this child’s name here. ▶ 5 Qualifying widow(er) (see instructions) Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a . . . . . b Spouse . . . . . . . . . . . . . . . . . . . . . . . . } c Dependents: (1) First name                         Last name (2) Dependent’s social security number (3) Dependent’s relationship to you (4) ✓ if child under age 17 qualifying for child tax credit (see instructions)
If more than four dependents, see instructions and check here ▶
d Total number of exemptions claimed . . . . . . . . . . . . . . . . .
Boxes checked on 6a and 6b No. of children on 6c who: • lived with you • did not live with you due to divorce or separation (see instructions) Dependents on 6c not entered above Add numbers on lines above ▶
Income
Attach Form(s) W-2 here. Also attach Forms W-2G and   1099-R if tax was withheld.
If you did not get a W-2,   see instructions.
7 Wages, salaries, tips, etc. Attach Form(s) W-2 . . . . . . . . . . . . 7 8a Taxable interest. Attach Schedule B if required . . . . . . . . . . . . 8a b Tax-exempt interest. Do not include on line 8a . . . 8b 9 a Ordinary dividends. Attach Schedule B if required . . . . . . . . . . . 9a b Qualified dividends . . . . . . . . . . . 9b 10 Taxable refunds, credits, or offsets of state and local income taxes . . . . . . 10 11 Alimony received . . . . . . . . . . . . . . . . . . . . . 11 12 Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . . . 12 13 Capital gain or (loss). Attach Schedule D if required. If not required, check here ▶ 13 14 Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . . . 14 15 a IRA distributions . 15a b Taxable amount . . . 15b 16 a Pensions and annuities 16a b Taxable amount . . . 16b 17 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 17 18 Farm income or (loss). Attach Schedule F . . . . . . . . . . . . . . 18 19 Unemployment compensation . . . . . . . . . . . . . . . . . 19 20 a Social security benefits 20a b Taxable amount . . . 20b 21 Other income. List type and amount 21 22 Combine the amounts in the far right column for lines 7 through 21. This is your total income ▶ 22
Adjusted Gross Income
23 Educator expenses . . . . . . . . . . . 23 24 Certain business expenses of reservists, performing artists, and fee-basis government officials. Attach Form 2106 or 2106-EZ 24 25 Health savings account deduction. Attach Form 8889 . 25 26 Moving expenses. Attach Form 3903 . . . . . . 26 27 Deductible part of self-employment tax. Attach Schedule SE . 27 28 Self-employed SEP, SIMPLE, and qualified plans . . 28 29 Self-employed health insurance deduction . . . . 29 30 Penalty on early withdrawal of savings . . . . . . 30 31 a Alimony paid b Recipient’s SSN ▶ 31a 32 IRA deduction . . . . . . . . . . . . . 32 33 Student loan interest deduction . . . . . . . . 33 34 Tuition and fees. Attach Form 8917 . . . . . . 34 35 Domestic production activities deduction. Attach Form 8903 35 36 Add lines 23 through 35 . . . . . . . . . . . . . . . . . . . 36 37 Subtract line 36 from line 22. This is your adjusted gross income . . . . . ▶ 37 For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 11320B Form 1040 (2017)

COUSE FEDERAL TAX PROCEDURE

Answer 1

Form

1040

Department of the Treasury––Internal Revenue Service      (99)

2017

U.S. Individual Income Tax Return

OMB No. 1545-0074

IRS Use Only—Do not write or staple in this space.

For the year Jan. 1--Dec. 31, 2017, or other tax year beginning

,2017, ending

See separate instructions.

Your first name and initial

Last name

Your social security number

Demarco

Jackson

If joint return, spouse's name & initial

Last name

Spouse's social security number

Janine

Home address (number and street). If you have a P.O. box, see instructions.

Apt. no.

Make sure the SSN(s) above and on line 6c are correct.

1610 Quince avenue

City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).

Presidential Election Campaign

Mc allen TX 78701

Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change your tax or

Foreign country name

Foreign province/state/county

Foreign postal code

refund.

You

Spouse

Filing Status

1

Single

4

Head of household (with qualifying person). (See instructions.)

2

x

Married filing joint return (even if only one had income)

If the qualifying person is a child but not your dependent, enter

Check only one

3

Married filing separate return. Enter spouse's SSN above

this child’s name here.

box.

and full name here.

5

Qualifying widow(er) (see instructions)

Boxes checked on 6a and 6b.

6a

X

Yourself.

If someone can claim you as a dependent, do not check box 6a .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

2

No. of children on 6c who:

Exemptions

b

X

Spouse .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

c

Dependents:

(2) Dependent's

(3) Dependent's

(4)       if child under age 17

• lived with you

social security

relationship to

qualifying for child tax credit

• did not live with

If more than four

(1) First name

Last name

number

you

(see instructions)

you due to divorce or separation (see instructions)

dependents, see

Damarcus Jackson

0

instructions and

Janine Jackson

0

check here.

Michael Jackson

0

Dependents on 6c not entered above

Candice Jackson

0

Add numbers on lines above

d

Total number of exemptions claimed .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

0

2

Income

7

Wages, salaries, tips, etc. Attach Form(s) W-2

.   .   .   .   .   .   .   .   .

7

219,295

8

a

Taxable interest. Attach Schedule B if required.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

8a

0

Attach Form(s)

b

Tax-exempt interest. Do not include on line 8a

.   .   .   .   .   .   .   .   .

8b

0

W-2 here. Also

9

a

Ordinary dividends. Attach Schedule B if required.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

9a

0

attach Forms

b

Qualified dividends

.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

9b

0

W-2G and

10

Taxable refunds, credits, or offsets of state and local income taxes   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

10

1099-R if tax

11

Alimony received

.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

.   .   .   .   .   .   .   .

11

was withheld.

12

Business income or (loss). Attach Schedule C or C-EZ.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .

12

20,500

13

Capital gain or (loss). Attach Schedule D if required. If not required, check here.

####

13

50,000

Tax and		38		Amount from line 37 (adjusted gross income)													0	0		0			0		38	289,795
Credits		39	a	Check			You were born before					January 2, 1953						Blind.   Total boxes					0
Standard				if:			Spouse was born before						January 2, 1953					Blind.   checked				39a
Deduction for --			b	If your spouse itemizes on a separate return or you were a dual-status alien, check here																			39b
•	People who check any box on line 39a or 39b or who can be claimed as a dependent, see instructions.	40		Itemized deductions (from Schedule A) or your standard deduction (see left margin)																				.   .   .   .   .	40	12,700
		41		Subtract line 40 from line 38																				.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .	41	277,095
		42		Exemptions.		If line 38 is $156,900 or less, multiply $4,050 by number on line 6d. Otherwise, see instructions.																			42	8,100
		43		Taxable income.			Subtract line 42 from line 41. If line 42 is more than line 41, enter -0-																	.   .   .   .   .   .	43	268,995
		44		Tax (see instructions). Check if any tax is from: a									Form(s) 8814      b					Form 4972 c							44	55,703
		45		Alternative minimum tax (see instructions). Attach Form 6251																				.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .	45	552
		46		Excess advance premium tax credit repayment. Attach Form 8962																				.   .   .   .   .   .   .   .   .   .   .   .   .   .   .	46
•	All others:	47		Add lines 44, 45, and 46																				.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .	47	56,255
	Single or Married filing separately,	48		Foreign tax credit. Attach Form 1116 if required													.   .   .   .   .   .   .   .	48		0
		49		Credit for child and dependent care expenses. Attach Form 2441 .   .   .													.	49		0
	$6,350	50		Education credits from Form 8863, line 19													.   .   .   .   .   .   .   .   .   .	50
	Married filing jointly or qualifying widow(er)	51		Retirement savings contributions credit. Attach Form 8880.													.   .   .	51
		52		Child tax credit. Attach Schedule 8812, if required													.   .   .   .   .   .   .   .	52		0
	$12,700	53		Residential energy credits. Attach Form 5695													.   .   .   .   .   .   .   .   .   .	53
	Head of household	54		Other credits from Form:   a						3800       b			8801 c					54
		55		Add lines 48 through 54.								These are your total credits   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .													55	0
	$9,350	56		Subtract line 55 from line 47. If line 55 is more than line 47, enter -0 -																			.   .   .   .   .   .   .   .   .   .   .   .		56	56,255
		57		Self-employment tax. Attach Schedule SE   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .																					57	0
	Other	58		Unreported social security and Medicare tax from Form:												a		4137	b		8919				58
	Taxes	59		Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .																					59
		60	a	Household employment taxes from Schedule H																Check box to indicate full-year coverage.					60a
			b	First-time homebuyer credit repayment. Attach Form 5405 if required																					60b
		61		Health care: individual responsibility (see instructions)											Full-year coverage										61
		62		Taxes from: a			Form 8959 b			X	Form 8960 c		Instructions; enter code(s)												62	1,512
		63		Add lines 56 through 62.					This is your total tax															.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .	63	57,767
	Payments	64		Federal income tax withheld from Forms W-2 and 1099													.   .   .   .   .   .	64		9,590
		65		2017 estimated tax payments & amount applied from 2016 return													.	65
	If you have a	66	a	Earned income credit (EIC)													.   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .   .	66a
	qualifying		b	Nontaxable combat pay election							.   .   .   .	66b
	child, attach	67		Additional child tax credit. Attach form 8812													.   .   .   .   .   .   .   .   .   .	67		0
	Schedule EIC.	68		American opportunity credit from Form 8863, line 8													.   .   .   .   .   .   .	68
		69		Net premium tax credit. Attach Form 8962													.   .   .   .   .   .   .   .   .   .   .	69
		70		Amount paid with request for extension to file													.   .   .   .   .   .   .   .   .   .	70
		71		Excess social security and tier 1 RRTA tax withheld													.   .   .   .   .   .   .	71		0
		72		Credit for federal tax on fuels. Attach Form 4136													.   .   .   .   .   .   .   .	72
		73		Credits from Form: a				2439   b			Resvd c		8885 d					73
		74		Add lines 64, 65, 66a, and 67 through 73.									These are your				total payments						.   .   .   .   .   .   .		74	9,590
	Refund	75		If line 74 is more than line 63, subtract line 63 from line 74.													This is the amount you overpaid								75	0
	Direct deposit?	76	a	Amount of   line 75 you want refunded to you.																	If Form 8888 is attached, check here				76a	0
	See		b	Routing number													4c Type:		Checking				Savings			Check sheet 2210
	instructions.		d	Account number																						to see if any tax
		77		Amount of line 75 you want													applied to your 2018 estimated tax	77								penalty is applicable.
	Amount	78		Amount you owe.																			Subtract line 74 from line 63. For details on how to pay, see instructions		78	48,177
	You Owe	79		Estimated tax penalty (see instructions)													.   .   .   .   .   .   .   .   .   .	79		0