; multiplied by (B) 50 percent. (2) Adjustment to student income The adjustment to student income is equal to the sum of— (A) the Federal income taxes of the student; (B) an allowance for payroll taxes determined in accordance with paragraph (3); (C) an income protection allowance that is equal to— (i) $9,110 for award year 2020–2021; and (ii) for each succeeding award year, the amount adjusted pursuant to section 478(b); and (D) an allowance for parents' negative available income, determined in accordance with paragraph (4). (3) Allowance for payroll taxes The allowance for payroll taxes is equal to the sum of— (A) the total amount earned by the student, multiplied by the rate of tax under section 3101(b) of the Internal Revenue Code of 1986