Question
For this tax return you are to use the information in Tax Return 2, Barbara Gonzalez. Required for this tax return is that you calculate
For this tax return you are to use the information in Tax Return 2, Barbara Gonzalez. Required for this tax return is that you calculate the QBI deduction Qualified Business income deduction. You do not have to calculate the self-employment tax or the deduction but you must include them on the tax return. I will give you the numbers. LIne 10 of Form 1040 is for you to calculate. Please include an additional page in which you show me how you calculated QBI deduction. Clearly label what each of the numbers are, in other words, your calculation should not just include numbers, but what each number represents. Line 15 on Form 1040 is other taxes, this is where self-employment tax goes. The amount is $12953. Schedule 1 line 14 is $6,477 and is also included in line 22. It is also included in Form 1040. Read the instructions as to where this is included in Form 1040. This is a hint only. There are other items on this schedule. Schedule 2, lines 4 and 10 are $12,953. This number is also included on line 15 on FORM 1040 Complete Schedule 3 on your own. Because you are now including the QBI deduction, the self-employment tax deduction, and the self employment tax some numbers will change such as the taxable income and the tax. Your job is to complete the revised tax return using what you have learned in Chapter 4 plus what amounts I have already given you. Here is what you must submit: FORM 1040 (THIS IS ALWAYS REQUIRED!) SCHEDULE 1, 2, and 3. CALCULATION OF THE QBI DEDUCTION CLEARLY LABELED or Form 8995. SCHEDULE C IS NOT REQUIRED, BUT YOU MUST OF COURSE, INCLUDE THE SCHEDULE C INCOME WHICH YOU WILL KNOW BASED ON PREPARING TAX RETURN 2 AND THE SOLUTION I PROVIDED TO TAX RETURN 2...
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