In 2021, Henry Jones (Social Security number 123-45-6789) 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 2021, Henry's qualified business income from driving is $128,800. Assume Henry takes the standard deduction of $12,550. Click here to access the 2021 individual tax rate schedule to use for this problem. Question Content Area Assume the QBI amount is net of the self- employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2021. QBI deduction: $ Tax liability (round to the nearest dollar): $ b. Complete Henry's 2021 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as positive numbers.
In 2021, Henry Jones (Social Security number 123-45-6789) 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 2021, Henry's qualified business income from driving is $128,800. Assume Henry takes the standard deduction of $12,550. Click here to access the 2021 individual tax rate schedule to use for this problem. Question Content Area Assume the QBI amount is net of the self- employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2021. QBI deduction: $ Tax liability (round to the nearest dollar): $ b. Complete Henry's 2021 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as positive numbers.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hh1.
Transcribed Image Text:In 2021, Henry Jones (Social Security number 123-45-6789) 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 2021, Henry's qualified business
income from driving is $128,800. Assume Henry takes the standard deduction of $12,550. Click here to access the 2021
individual tax rate schedule to use for this problem. Question Content Area Assume the QBI amount is net of the self-
employment tax deduction.
a. Compute Henry's QBI deduction and his tax liability for 2021.
QBI deduction: $
Tax liability (round to the nearest dollar): $
b. Complete Henry's 2021 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as
positive numbers.
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