Answer is incorrect because they are not deducting the 1/2 self-employment tax from the Schedule C net profit. Once you figure your self employment tax on the net profit, deduct half that amount from your total income to give you your AGI. You also need to take the QBI deduction plus the standard deduction. QBI=20%*(sch c net profit-half self employment tax). That will give you taxable income.

Mr. Coleman, an unmarried individual, has the following income items: Interest income Schedule C net profit $23,800 58,240 He has $10,000 itemized deductions and no dependents. Mr. Coleman's Schedule C income is qualified business income (non service). Required: Compute Mr. Coleman's income tax. Assume the taxable year is 2020. Use Individual Tax Rate Schedules and Standard Deduction Table. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) X Answer is complete but not entirely correct. Amount AGI $ 82,040 Taxable Income $ 57,992 X 8,548 X Income tax $