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Exercise 15-19 (LO. 3, 4) In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $fill in the blank 1 Tax liability (round to the nearest dollar): $fill in the blank 2

Exercise 15-19 (LO. 3, 4) In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: $fill in the blank 1 Tax liability (round to the nearest dollar): $fill in the blank 2

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter24: Multistate Corporate Taxation
Section: Chapter Questions
Problem 26P
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Exercise 15-19 (LO. 3, 4)

In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400.

Click here to access the 2020 individual tax rate schedule to use for this problem.

Assume the QBI amount is net of the self-employment tax deduction.

Compute Henry's QBI deduction and his tax liability for 2020.

QBI deduction: $fill in the blank 1
Tax liability (round to the nearest dollar): $fill in the blank 2

 

 

Single-Schedule X Head of household-Schedule Z If taxable of the If taxable of the income is: But not аmount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- $ 9,875 .........10% $ $ 14,100 .....10% 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% 518,400 Married filing jointly or Qualifying widow(er)– Schedule Y-1 Married filing separately-Schedule Y-2 If taxable of the If taxable of the income is: But not атount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- $ 19,750 .... 10% $ $ 9,875 .... 10% 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 85,525 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 163,300 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 207,350 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 311,025 ......... .........
Transcribed Image Text:Single-Schedule X Head of household-Schedule Z If taxable of the If taxable of the income is: But not аmount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- $ 9,875 .........10% $ $ 14,100 .....10% 9,875 40,125 $ 987.50 + 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 163,300 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 207,350 518,400 156,235.00 + 37% 518,400 518,400 154,793.50 + 37% 518,400 Married filing jointly or Qualifying widow(er)– Schedule Y-1 Married filing separately-Schedule Y-2 If taxable of the If taxable of the income is: But not атount income is: But not amount Over- over- The tax is: over- Over- over- The tax is: over- $ 19,750 .... 10% $ $ 9,875 .... 10% 19,750 80,250 $ 1,975.00 + 12% 19,750 9,875 40,125 987.50 + 12% 9,875 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 40,125 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 85,525 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 163,300 414,700 622,050 94,735.00 + 35% 414,700 207,350 311,025 47,367.50 + 35% 207,350 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 311,025 ......... .........
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