Exercise 11-3 (LO. 6) In 2020, Henry Jones (Social Security number 123-45-6789) works as a freelance driver, finding cus
Posted: Tue Apr 26, 2022 10:33 am
Exercise 11-3 (LO. 6)
In 2020, 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 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.
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 2020.
QBI deduction: $fill in the blank 02b5fc025fd7ff3_1
Tax liability (round to the nearest dollar): $fill in the blank
02b5fc025fd7ff3_2
Question Content Area
b. Complete Henry's 2020 Form 8995
(Qualified Business Income Deduction Simplified Computation).
Enter all amounts as positive numbers. If an amount is
zero, enter "0".
2020
Attachment
Sequence No. 55
In 2020, 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 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.
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 2020.
QBI deduction: $fill in the blank 02b5fc025fd7ff3_1
Tax liability (round to the nearest dollar): $fill in the blank
02b5fc025fd7ff3_2
Question Content Area
b. Complete Henry's 2020 Form 8995
(Qualified Business Income Deduction Simplified Computation).
Enter all amounts as positive numbers. If an amount is
zero, enter "0".
2020
Attachment
Sequence No. 55