Richard McCarthy (born 2/14/1966; Social Security number 100-10-9090) and Christine McCarthy (born 6/1/1968; Social security number 101-21-3434) have a 19-year-old son Jack, (born 10/2/2001; Social Security number 555-55-1212), who is a full-time student at the University of Key West. The McCarthys also have a 12-year-old daughter Justine, (Social Security number 444-23-1212), who lives with them. The McCarthys can claim a $2,000 child tax credit for Justine and a $500 other dependent credit for Jack. The McCarthys did not receive an EIP in 2020. Richard is the CEO at a paper company. His 2020 Form W-2 is provided.

Christine is an optometrist and operates her own practice ("The Eyes of March") in town as a sole proprietor. The shop address is 1030 Morgan Highway, Clarks Summit, PA 18411 and the business code is 621320. Christine keeps her books on the accrual basis and her bookkeeper provided the following information:

Gross sales		$270,500
Returns		9,000
Inventory:
Beginning inventory	$25,000
Purchases	120,000
Ending inventory	29,000
Rent		24,000
Insurance		11,000
Professional fees		3,000
Payroll		35,000
Payroll taxes		2,877
Utilities		3,975
Office expenses		1,995
Depreciation		5,000

Christine came into contact with a client that had COVID and was unable to work for 14 days under orders of state health officials. Her employees were unaffected. She also elected to defer self-employment taxes (but not household taxes) under the COVID provisions. She allocates 77.5 percent of her income to the March 27 to December 31, 2020 COVID period.

The McCarthys have a nanny/housekeeper whom they paid $12,700 during 2020. They did not withhold income or FICA taxes. The McCarthys paid Pennsylvania state unemployment tax of $378 in 2020.

Christine received a 2020 Form 1099-INT from the National Bank of Scranton that listed interest income of $23,500. Note that McCarthys reasonably allocate $751 to state income tax expense for purposes of the net investment income tax.

The McCarthys received a Form 1099-G from Pennsylvania that reported a $477 state income tax refund from 2019. The McCarthys filed a Schedule A in 2019 and had $14,223 of state income tax expense that was limited to a $10,000 deduction.

The McCarthys paid the following in 2020:

Home mortgage interest	$15,600
Property taxes	5,450
Estimated state income tax payments	2,400
Estimated Federal income tax payments	4,500
Charitable contributions (all cash)	7,600
Student loan interest	2,690

How much is the Qualified Business Income Deduction????