Question

In 2020, Meghann Carlson, a single taxpayer, has QBI of $118,600 and modified taxable income of $83,020 (this is also her taxable income before the QBI deduction). Given this information, what is Meghann's QBI deduction

Answer 1

Answer:

$16,604

Explanation:

Calculation to determine Meghann's QBI deduction

Using this formula

Meghann's QBI deduction = Taxable income *Tax rate

Meghann's QBI deduction =$83,020 x 20%

Meghann's QBI deduction =$16,604

Therefore Meghann's QBI deduction is $16,604