Exercise $15-21($Algorithmic$)($L$0.3,4)$

In $2022,$ 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 $2022,$ Henry's qualified business income from driving is $$87,400.$

Assume Henry takes the standard deduction of $$12,950.$

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$.$ Compute Henry's QBI deduction and his tax liability for $2022.$

QBI deduction: $

Tax liability $($round to the nearest cent$)$: s

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In determining QBI, all deductions attributable to a trade or business are taken into account. As a result, a taxpayer must reduce QBI by the self$-$

employment tax deduction $[164($f$)],$ the self$-$employed health insurance deduction $[162($I$)],$ and any deduction for contributions to qualified

retirement plans $[404].$

b$.$ Complete Henry's $2022$ Form $8995($Qualified Business Income Deduction Simplified Computation$).$ Enter all amounts as positive

numbers.