Question #1

Evan, a single individual, operates a service business that earned $110,000 (after all applicable deductions) in 2022. The business has no tangible property and paid no W-2 wages.

1. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $125,000.
2. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000.

Question #2

For 2022, Ms. Deming earned wages totaling $225,000.

1. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming is single.
2. Calculate any 0.9 percent additional Medicare tax owed, assuming that Ms. Deming files a joint return with her husband who earned $100,000 of wages for 2022.