Understanding QBI Deductions and Tax Liability for Married

Problem 2-28 (LO. 3, 4) 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 $389,800 (this is also their modified taxable income). Click here to access the2021 individual tax rate scheduleto use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Feedback Check My Work Correcta.Scott and Laura's QBI deduction is $ ✔ 36,000 , taxable income is $ ✔ 353,800 , and tax liability is $ ✔ 74,870 for 2021. Feedback Check My Work There are three limitations on the QBI deduction: an overall limitation (based on modified taxable income), another that applies to high-income taxpayers, and a third that applies to certain types of services businesses. The second and third limitations only apply when taxable income before the QBI deduction exceeds $329,800 (married taxpayers filing a joint return) or $164,900 (single and head-of-household taxpayers). Once these thresholds are reached, § 199A imposes two independent limitations. b.After providing you the original information in the problem, Scott finds out that he will be receiving a $6,000 bonus in December 2021 (increasing their taxable income before the QBI deduction by this amount). Redetermine Scott and Laura's QBI deduction, taxable income, and tax liability for 2021. Scott and Laura's QBI deduction is $ ✔ 33,600 , taxable income is $ ✔ 362,200 , and tax liability is $ ✔ 77,558 for 2021. Feedback Check My Work Correct c.What is the marginal tax rate on Scott's bonus?Round your answer to one decimal place. ✔ 44.8 % Feedback Check My Work Correct