Donna and Mark Are Married and File a Joint Return

question 115

Multiple Choice

Donna and Mark are married and file a joint return reporting taxable income of $350,000. Donna owns a qualified S corporation that is not a specified service business. During the year, Donna incurs qualified business income of $75,000. Donna's share of wages paid by the business is $20,000. Assuming there is no qualified property factor, calculate her 20% QBI deduction.

• A) $0.
• B) $9,750.
• C) $15,000.
• D) $20,000.

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Definitions:

Federal Trade Commission

A U.S. government agency aimed at preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education.

Contraceptive Technique

Methods or devices used to prevent pregnancy as a part of family planning or sexual health strategies.

Family Planning

The practice of controlling the number and spacing of one’s children, using various methods of contraception and fertility management.

Vaginal Ring

A flexible, plastic ring inserted into the vagina to release hormones, preventing ovulation as a method of contraception.