eBook Print Item Exercise 2-21 (Algorithmic) (LO. 3, 4) In 2021, 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 2021, Henry's qualified business income from driving is $130,600 Assume Henry takes the standard deduction of $12,550. Click here to access the 2021 i hedule to use for this problem. Assume the QBI amount is net of employment tax deduction Compute Henry's QB deduction an d his tax liability for 2021 QBI deduction: Tax liability (round to the nearest dollar): Feedback Check My Work b. Complete Henry's 2021 Form 8995 (Qualified Business Income Deduction Simplified Computation). Enter all amounts as positive numbers . Qualified Business Income Deduction OMB No. 1545-2294 Form 8995 Simplified Computation 2021 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service - Go to www.irs.gov/Form8995 for instructions and the latest information. Sequence No. 55 Name(s) shown on return Your taxpayer identification number Henry Jones 123-45-6789 Note: You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricultural or horticultural cooperative. See instructions. Use this form if your taxable income, before your qualified business income deduction, is above $164,900 ($164,925 if married filing separately; $329,800 if married filing jointly), and you aren't a patron of an agricultural or horticultural cooperative. (b) Taxpayer (c) Qualified business (a) Trade, business, or aggregation name identification number income or (loss Check My Work All work saved. Save aii Total qualified business income or (loss). Combine lines 1i through 1v, column (c) 3 Qualified business net (loss) carryforward from the prior year Total qualified business income. Combine lines 2 and 3. If zero or less, enter -0- 5 Qualified business income component. Multiply line 4 by 20% (0.20) 6 Qualified REIT dividends and publicly traded partnership (PTP) income or (loss) (see instructions) Qualified REIT dividends and qualified PTP (loss) carryforward from the prior year . 8 Total qualified REIT dividends and PTP income. Combine lines 6 and 7. If zero or less enter -0- 9 REIT and PTP component. Multiply line 8 by 20% (0.20) . 10 Qualified business income deduction before the income limitation. Add lines 5 and 9 10 11 Taxable income before qualified business income deduction (see instructions) 12 Net capital gain (see instructions) 13 Subtract line 12 from line 11. If zero or less, enter -0- 14 Income limitation. Multiply line 13 by 20% (0.20) 15 Qualified business income deduction. Enter the smaller of line 10 or line 14. Also enter this amount on the applicable line of your return (see instructions) . 15 16 Total qualified business (loss) carryforward. Combine lines 2 and 3. If greater than zero, enter -0- 16 17 Total qualified REIT dividends and PTP (loss) carryforward. Combine lines 6 and 7. If greater than zero enter - 0- . . For Privacy Act and Paperwork Reduction Act Notice, see instructions Cat. No. 378060 Form 8995 (2021)