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 $118,000. 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: $ 21,120 Tax liability (round to the nearest dollar): $ Single-Schedule X 2020 Tax Rate Schedules Head of household-Schedule Z If taxable income is: Over- But not over- The tax is: of the amount over- If taxable of the income is: Over- S 0 $ 9,875 .........10% $ 0 $ 0 But not over- $ 14,100 amount The tax is: over- .........10% $ 0 9,875 40,125 40,125 85,525 $ 987.50 12% 9,875 14,100 53,700 $ 1,410.00 + 12% 14,100 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)- Married filing separately-Schedule Y-2 Schedule Y-1 If taxable income is: Over- But not over- of the amount The tax is: over- If taxable income is: Over- But not over- of the amount The tax is: over- S 0 $ 19,750 19,750 80,250 $ ....10% 1,975.00 12% $ 0 S 0 $ 9,875 .10% $ 0 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