Question
Mr. P is an unmarried individual with no dependent children. He reports the following information. Assume the taxable year is 2021. Wages- $65,000 Schedule C
Mr. P is an unmarried individual with no dependent children. He reports the following information. Assume the taxable year is 2021.
Wages- $65,000
Schedule C net profit- $11,650
Interest from savings account- $500
Self-employment Tax on Schedule C net profit- $1,646
a. Assume that Mr. Perry's itemized deductions total $9,000 and his Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.
b. Assume that Mr. Perry's itemized deductions total $14,000 and his Schedule C net business profit is qualified business income (non-service). Compute AGI and taxable income.
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