In 2022, 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 2022, Henry's qualified business income from driving is $134,200. Assume Henry takes the standard deduction of $12,950. Click here to access the 2022 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2022. QBI deduction: 24,250 Tax liability (round to the nearest cent):

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 2-21 (Algorithmic) (LO. 3, 4)
In 2022, 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 2022, Henry's qualified business income from driving is $134,200.
Assume Henry takes the standard deduction of $12,950.
Click here to access the 2022 individual tax rate schedule to use for this problem.
Assume the QBI amount is net of the self-employment tax deduction.
a. Compute Henry's QBI deduction and his tax liability for 2022.
QBI deduction: $
24,250
Tax liability (round to the nearest cent): $
Transcribed Image Text:Exercise 2-21 (Algorithmic) (LO. 3, 4) In 2022, 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 2022, Henry's qualified business income from driving is $134,200. Assume Henry takes the standard deduction of $12,950. Click here to access the 2022 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2022. QBI deduction: $ 24,250 Tax liability (round to the nearest cent): $
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