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

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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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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