n 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 $110,800. 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: 19, 650 Tax liability (round to the nearest dollar):
n 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 $110,800. 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: 19, 650 Tax liability (round to the nearest dollar):
Chapter15: Taxing Business Income
Section: Chapter Questions
Problem 19CE
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Transcribed Image Text:n 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 $110, 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:
19,650 Tax liability (round to the nearest dollar):
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