Please answer the following two questions:

1. What is the qualified business income deduction?
2. What amount should be in the tax?

The following information is for 2018:

Roberta Santos files as the head of the household, and her salary was $80,000. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Roberta has legal custody of Jason and June. Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2018. Roberta did not sign Form 8332 to Wayne regarding Jason. Roberta provides all of June's support.

Roberta's mother passed and she inherited $625,000 in assets. Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Also, Roberta's aunt gave her $13,000 for her birthday.

On November 18, 2018, Roberta sold Amber stock for $22,000 that she had purchased for $24,000 on December 5, 2012. The cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2014. On December 1, 2018, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2014, for $8,000.

An examination of Roberta's records reveals that she received the following:

• Interest income of $2,500 from First Savings Bank.
• Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.
• Qualified dividend income of $1,800 from Amber.
• Interest income of $3,750 on City of Springfield school bonds.
• Alimony of $16,000 from Wayne; divorce finalized in 2015.
• Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W2 wage limitation does not.

From her checkbook records, she determines that she made the following payments during 2018:

• Charitable contributions of $6,000
• $5,000 for the medical expenses of a friend.
• Mortgage interest on her residence of $7,800.
• Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.
• Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.
• Medical expenses of $5,000 for her and $800 for Jason. Her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage.
• A $1,000 ticket for parking in a handicapped space.
• Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket.
• Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.

Schedule Z for Head of Household -

Taxable Income	Tax amount
$51,800 - $82,500	$5,944 + 22%
$82,500 - $157,500	$12,698 + 24%
$157,500 - $200,000	$30,698 + 32%