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Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a specified services business) that generates qualified
Scott and Laura are married and will file a joint tax return. Laura has a sole proprietorship (not a "specified services" business) that generates qualified business income of $300,000. The proprietorship pays W-2 wages of $40,000 and holds property with an unadjusted basis of $10,000. Scott is employed by a local school district. Their taxable income before the QBI deduction is $400,100 (this is also their modified taxable income). Click here to access the 2022 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. a. Scott and Laura's QBI deduction is $ 74,870 X for 2022. 36,000 , taxable income is $ 353,800 X, and tax liability is Feedback Check My Work b. After providing you the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2022 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2022. Scott and Laura's QBI deduction is $ 33,600 , taxable income is $ 362,200 X, and tax liability is $ 77,558 X for 2022. Feedback Check My Work Partially correct c. What is the marginal tax rate on Scott's bonus? Round your answer to one decimal place. 44.8 %
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