1. In 2021, Ivanna, who has three children under age 13, worked full-time while her husband, Sergio, was attending college for nine months during the year. Ivanna earned $47,000 and incurred $6,400 of child care expenses.

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Determine amount of Ivanna and Sergio's child and dependent care credit ________

2. In 2021, Bianca earned a salary of $171,800 from her employer.

Round your answer to whole dollar amount, if necessary.

How much in FICA Social Security will be and Medicare taxes withheld from Bianca's salary? Social Security: $ Medicare: $

3. Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert's $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000.

a. What is Robert's qualified business income? $ 325,000 (correct)

b. What is Robert's qualified business income if you determined that reasonable compensation for someone with Robert's experience and responsibilities is $200,000?

__________ (Please answer this question)

4. Thad, a single taxpayer, has taxable income before the QBI deduction of $194,900. Thad, a CPA, operates an accounting practice as a single member LLC (which he reports as a sole proprietorship). During 2021, his proprietorship generates qualified business income of $150,000, W2 wages of $125,000, and $10,000 of qualified property.

Assume the QBI amount is net of the self-employment tax deduction.

What is Thad's qualified business income deduction? _________