Homework answers / question archive / Explanation/Computations as needed 5 6 Qualified business income (QBI) from Nelson Engineering 7 W-2 Wages for this activity 8 Qualified Property (investment) for this activity 9 10 Qualified business income (QBI) from Jeannie Abstract 11 W-2 Wages for this activity 12 Qualified Property investment) for this activity 13 14 Taxable income before QBI Deduction Wage based Limitation Taxable income before QBI and pref rates 15 threshold 16 17 Qualified Business Income Deduction: 18 Lesser of: QBI Calculation 19 a) QBI from Nelson Engineering 20 QBI from Jeannie Abstract 21 Rate 20% 22 Total QBI 23 or Taxable income Limitation 24 b) Taxable income before QBI Deduction 25 Income at preferential rates 26 Excess of income over capital gains 27 Rate 20% 28 29 30 Wage Based Limitation on QBI: 31 Applies Yes or No 32 If Yes then compute below: 33 Greater of: 34 Nelson 35 a) 50% of wages 36 b) 25% of wages + 2

Explanation/Computations as needed 5 6 Qualified business income (QBI) from Nelson Engineering 7 W-2 Wages for this activity 8 Qualified Property (investment) for this activity 9 10 Qualified business income (QBI) from Jeannie Abstract 11 W-2 Wages for this activity 12 Qualified Property investment) for this activity 13 14 Taxable income before QBI Deduction Wage based Limitation Taxable income before QBI and pref rates 15 threshold 16 17 Qualified Business Income Deduction: 18 Lesser of: QBI Calculation 19 a) QBI from Nelson Engineering 20 QBI from Jeannie Abstract 21 Rate 20% 22 Total QBI 23 or Taxable income Limitation 24 b) Taxable income before QBI Deduction 25 Income at preferential rates 26 Excess of income over capital gains 27 Rate 20% 28 29 30 Wage Based Limitation on QBI: 31 Applies Yes or No 32 If Yes then compute below: 33 Greater of: 34 Nelson 35 a) 50% of wages 36 b) 25% of wages + 2

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Explanation/Computations as needed 5 6 Qualified business income (QBI) from Nelson Engineering 7 W-2 Wages for this activity 8 Qualified Property (investment) for this activity 9 10 Qualified business income (QBI) from Jeannie Abstract 11 W-2 Wages for this activity 12 Qualified Property investment) for this activity 13 14 Taxable income before QBI Deduction Wage based Limitation Taxable income before QBI and pref rates 15 threshold 16 17 Qualified Business Income Deduction: 18 Lesser of: QBI Calculation 19 a) QBI from Nelson Engineering 20 QBI from Jeannie Abstract 21 Rate 20% 22 Total QBI 23 or Taxable income Limitation 24 b) Taxable income before QBI Deduction 25 Income at preferential rates 26 Excess of income over capital gains 27 Rate 20% 28 29 30 Wage Based Limitation on QBI: 31 Applies Yes or No 32 If Yes then compute below: 33 Greater of: 34 Nelson 35 a) 50% of wages 36 b) 25% of wages + 2.5% of qualified proper 37 38 Greater of: 39 Jeannie 40 a) 50% of wages 41 b) 25% of wages +2.5% of qualified proper 42 43 44 Amount of QBI Deduction 45 B C D E ?? F G G H ? 1 Child Tax Credit N 2 Base Credit Add'l 2021 Explanation/Computations as needed 3 # of children eligible for credit 4 Base credit per child amount 5 # of other dependents 6 Per other dependent credit amount 7 # of children under 6 8 Per child under 6 credit amount 9 Total Child Tax Credit before phase-out 10 11 Adjusted Gross Income (AGI) 12 Phase-out threshhold 13 AGI In Excess of threshold 14 Credit Phase-out Increment 15 Amount of Credit Phase-out 16 Net Child Tax Credit 17 18 Total Net Child Tax Credit on Return 19 A B 1 2 D E H Tony & Jeannie Nelson Nelson Engineering 2021 Amount Explanation/Computations as needed 3 4 Item Description 5 Revenue 6 Cost of Goods Sold 7 Gross Profit 8 Business Expenses: 9 Wages 10 Rent Expense 11 Taxes 12 Utilities 13 Depreciation 14 Interest 15 Travel 16 Entertainment 17 Meals 18 Other Expenses 19 Total Expenses 20 Net Business Taxable income (Loss) 21 22 Self Employment Tax Deduction 23 24 A B F ?? G H 1 1 3 Explanation/Computations as needed A C D E Tony & Jeannie Nelson 2 Jeannie Abstracts 3 2021 4 Item Description Amount 5 Revenue 6 Cost of Goods Sold 7 Gross Profit 8 Business Expenses: 9 Wages 10 Taxes 11 Utilities 12 Depreciation 13 Other Expenses 14 Total Expenses 15 Net Business Taxable Income (Loss) 16 17 Self Employment Tax Deduction 18 19 A B G H 1 J ? M N O 1 2 3 D F Tony & Jeannie Nelson Sale of Assets 2021 Short Term Net Gain Capital Cost (Loss) Gain/(Loss) 4 Long Term Capital Gain/(Loss) 28% 25% 0/15/20 5 Items Proceeds Explanation/Computations as needed 6 a 7 8 9 + .. OOO ? d 10 11 f 12 g Carryover 13 Total Gain / (Losses) Steps 1 & 2 14 Netting Steps: 15 16 17 18 19 20 21 22 23 24 NET GAIN (LOSSES) 25 A B C D E F G H Tony & Jeannie Nelson Itemized Deductions 2021 Hem Description Amount Subrora/ Total splanation/Compulations as need's Medical Deduction Total Expenses Medical Expense Deductible Tazes Paid 6889888988@NOAANSOWN- 26 Total Expenses 27 29 Tax Expense Deductible Interest Paid Total Expenses Interest Expense Deductible Charitable Contributions 41 42 43 44 45 46 47 48 49 50 51 52 53 Total Expenses Charitable Contribution Deductible Other Itemized Deductions 57 Total Expenses 59 Other Deductible 9888 8 8 9 8 88988: Total Itemized Deductions 62 63 Standard Deduction 65 Amount Deductible