ACC 175 Federal Taxation for Individuals Fall 2020 Case 4 50 points General Information: Each student must individually complete and submit for grading all pages of the tax return. Prepare the 2019 Tax Return for Janice Morgan. There will be a total of 10 pages to submit 8 forms. Form 1040, pages 1 and 2 Schedules 1, 2, & 3 Schedule A Schedule C pages 1 and 2 Schedule SE Page 1 only (but okay if the form is submitted with 2 pages, nothing goes on page 2) Form 4562 Page 1 only (but okay if the form is submitted with 2 pages, nothing goes on page 2) 2019 Tax Return Information: Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In February 2019, Janice opened her own office located at 2751 Waldham Road, Pleasant Hill, NM 88135. She called her business Writers Anonymous. Janice is a cash basis taxpayer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 128-45-6888. Janice wants to contribute to the Presidential Election Campaign Fund. During 2019, Janice reported the following income and expense items connected with her business. She did not make any payments that required a 1099. The Business code for Schedule C, Box B is 711510. Income from services rendered $85,000 Rent 16,500 Utilities 7,900 Supplies 1,300 Insurance 5,000 Travel (including meals $1,200) 3,500 Software for business 500 Janice purchased and placed in service two plant assets for her business. Janice wants to elect immediate expensing under Section 179, if possible, the following asset: Furniture and fixtures (new) costing $21,000 on February 2, 2019. For the following asset, Janice has decided to opt out of Section 179, instead she will use MACRS table with the half-year convention and 200% Double Declining Balance method for it: Computer equipment (new) costing $12,400 for February 2, 2019. Janices itemized deductions include: NM income tax owed for 2018, paid in 2019 (950) + estimates of 3,000 pd in 2019 $3,950 Home mortgage interest paid to First National Bank 6,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 Janice received a 1099 from the State of New Mexico for $4,000 for unemployment compensation for January 2019 when she was looking for work. The 1099 shows $400 as Federal income tax withheld. Janice made federal income tax estimated payments of $5,500 for 2019. If an overpayment, she would like the funds applied to her 2020 estimated tax, not refunded to her. If she owes, you do not need to calculate a penalty. Dont forget to calculate the Qualified Business Income deduction.