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1. Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal services, Inc. She owns and

1. Jane Smith, age 40, is single and has no dependents. She is employed as a legal secretary by Legal services, Inc. She owns and operates Typing Services located near the campus of Florida Atlantic University at 1986 Campus Drive. Jane is a material participant in the business. She is a cash basis taxpayer. Jane lives at 2020 Oakcrest Road, Boca Raton, Fl. 33431. Janes social Security number is 123-45-6789. Jane indicates that she wishes to designate $3 to the presidential Election Campaign Fund. During 2009, Jane had the following income and expense items: a. $50,000 salary from Legal Services, Inc. b. $20,000 gross receipts from her typing services business. c. $700 interest income from Acme National Bank d. $1,000 Christmas bonus from Legal Services, Inc. e. $60,000 life insurance proceeds on the death of her sister. f. $5000 check given to her by her wealthy aunt. g. 100 won in a bingo game. h. Expenses connected with the typing service; Office rent $7,000 Supplies $4,400 Utilities and telephone $4,680 Wages to part time typist $5,000 Payroll taxes $500 Equipment rentals $3,000 i. $8,346 interest expense on a home mortgage (paid to San Jose savings and loan) j. $5000 fair market value of silverware stole from her home by a burglar on October 12, 2009. Jane had paid $4000 for the silverware on July 1, 2000. Her insurance company reimbursed her $1,500. k. Jane had loaned $2,100 to a friend, Joan Jensen, on June 3, 2006. Joan declared bankruptcy on August 14, 2009, and was unable to repay the loan. Assume the loan is a bona fide debt. l. Legal Services, Inc., withheld Federal income tax of $7,500 and FICA tax of $3,551 (social security tax of $2,878 ($51,000 - $4,5800 x 6.2%) + Medicare tax of $673 (($51,000 - $4,580) x 1.45%)) m. Alimony of $10,000 received from her former husband, Ted Smith. n. Interest income of $800 on City of Boca Raton bonds. o. Jane made estimated Federal tax payments of $1,000. p. Sales taxes from the sales tax table of $654 q. Charitable contributions of $2500 PART 1- TAX COMPUTATION what information out of the information above should i include in the tax program when calculating jane smiths tax refund

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