In 2020, 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 2020, Henry's qualified business income from driving is $109,000. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Compute Henry's QBI deduction and his tax liability for 2020. QBI deduction: 19,320 Tax liability (round to the nearest dollar): 2020 Tax Rate Schedules Single-Schedule X Head of household-Schedule Z If taxable income is: Over- $ 0 But not over- $ 9,875 The tax is: of the amount Over- If taxable income is: of the Over- But not Over- The tax is: amount over- 10% $ 5 $14,100 10% 0 9,875 40,125 $ 987.50+12% 9,875 14,100 53,700 $ 1,410.00+12% 14,100 40,125 85.525 4,617.50 +22% 40,125 53.700 85.500 6,162.00 +22% 53,700 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 85,500 163,300 207,350 33,271.50 32% 163,300 163,300 207,350 31,830.00+32% 163,300 207,350 518,400 47,367.50+35% 207,350 207,350 518,400 45,926.00 35% 207,350 518,400 156,235.00+37% 518,400 518,400 154,793.50 +37% 518,400 Married filing jointly or Qualifying widow(er)- Schedule Y-1 Married filing separately-Schedule Y-2 If taxable income is: Over But not Over- $ 19,750 The tax is: -----10% of the amount over If taxable income is: Over- But not Over of the amount The tax is: over $ 0 $ 9,875 ------10% $ 19,750 80.250 $ 1,975.00+12% 19,750 9.875 40,125 $ 987.50+12% 9.875 80,250 171,050 9.235.00 +22% 80,250 40.125 85,525 4,617.50 +22% 40,125 171,050 326.600 29,211.00 + 24% 171,050 85.525 163,300 14,605.50 24% 85.525 326,600 414,700 66.543.00 32% 326,600 163.300 207.350 33,271.50 32% 163.300 414,700 622.050 94,735.00 35% 414,700 207,350 311,025 47,367.50 -35% 207,350 622,050 167,307.50 37% 622.050 311,025 83,653.75 -37% 311,025