In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $87,400. Assume Henry takes the standard deduction of $12,400.

Click here to access the 2020 individual tax rate schedule to use for this problem.

Assume the QBI amount is net of the self-employment tax deduction.

Compute Henry's QBI deduction and his tax liability for 2020.

QBI deduction: $15000

Tax liability (round to the nearest dollar): $ ???

Taxable Income1 Tax Rates Joint Filers Single Filers Federal Net Investment Income2 Long-Term Capital Gains $0 - $19,750 $0 - $9,875 10% - 0% $19,751 - $80,000 $9,876 - $40,000 12% $80,001 - $80,250 $40,001 - $40,125 12% 15% $80,251 - $171,050 $40,126 - $85,525 22% $171,051 - $250,000 $85,526 - $163,300 24% - $163,301 - $200,000 32% $250,001 - $326,600 - 24% 3.8% $326,601 - $414,700 $200,001 - $207,350 32% $414,701 - $496,600 $207,351 - $441,450 35% $496,601 - $622,050 $441,451 - $518,400 35% 20% $622,051 and above $518,401 and above 37% Taxable Income1 Federal Tax Rates Married Filing Separately Head of Household Income Net Investment Income2 Long-Term Capital Gains $0 - $9,875 $0 - $14,100 10% - 0% $9,876 - $40,000 $14,101 - $53,600 12% $40,001 - $40,125 $53,601 - $53,700 12% 15% $40,126 - $85,525 $53,701 - $85,500 22% $85,526 - $125,000 $85,501 - $163,300 24% - $163,301 - $200,000 32% $125,001 - $163,300 - 24% 3.8% $163,301 - $207,350 $200,001 - $207,350 32% $207,351 - $248,300 $207,351 - $469,050 35% $248,301 - $311,025 $469,051 - $518,400 35% 20% $311,026 and above $518,401 and above 37%