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Sagot :
Answer:
a. QBI Deduction = $9,800
Tax liability = $4,510
Explanation:
a. The BI deduction in 2019 was 20% of the qualified business income in excess of the standard deduction:
QBI deduction = (61,200 - 12,200) * 20%
= $9,800
We then use this to find the taxable income:
= Qualified business income - standard deduction - QBI deduction
= 61,200 - 12,200 - 9,800
= $39,200
Tax liability for a single person in 2019 as shown by the attached file is:
= 970 + 12% * (39,200 - 9,700)
= 970 + 3,540
= $4,510
b. Form not attached but the main item should be the taxable income which is calculated above.
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