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 $51,200. 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 nability for 2020. QBI deduction: 9,760 Tax liability (round to the nearest dollar): 9995 2020 Qualified Business Income Deduction Simplified Computation wird www --- - . 1oad --- . www. 13 r - 1 Style IT 22 of the amount over- $ 0 .........10% 14,100 53,700 85,500 163,300 207,350 2020 Tax Rate Schedules Single-Schedule X Head of householdSchedule Z If taxable of the If taxable income is: But not amount income is: But not Over- over The tax is: over- Over- Over- The tax is: $ 0 $ 9,875 $ 0 $ 0 $ 14,100 ......... 10% 9,875 40,125 $ 987.50 +12% 9,875 14,100 53,700 $ 1,410.00 + 12% 40,125 85,525 4,617.50 + 22% 40,125 53,700 85,500 6,162.00 + 22% 85,525 163,300 14,605.50 + 24% 85,525 85,500 163,300 13,158.00 + 24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518,400 45,926.00 + 35% 518,400 156,235.00 + 37% + 518,400 518,400 154,793.50 + 37% Married filing jointly or Qualifying widow(er) Married filing separatelySchedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over over- The tax is: over- Over- over- The tax is: $ 0 $ 19,750 ......... 10% $ 0 $ 0 $ 9,875 ......... 10% 19,750 80,250 $ 1,975.00 +12% 19,750 9,875 40,125 $ 987.50 +12% 80,250 171,050 9,235.00 + 22% 80,250 40,125 85,525 4,617.50 + 22% 171,050 326,600 29,211.00 + 24% 171,050 85,525 163,300 14,605.50 + 24% 326,600 414,700 66,543.00 + 32% 326,600 163,300 207,350 33,271.50 + 32% 414,700 622,050 94,735.00+ 35% 414,700 207,350 311,025 47,367.50 + 35% 622,050 167,307.50 + 37% 622,050 311,025 83,653.75 + 37% 518,400 of the amount over- $ 0 9,875 40,125 85,525 163,300 207,350 311,025