Form 1040, schedule 1, 2, A, B , C

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2020, 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 123-45-6782. Janice's parents continue to provide health insurance for her under their policy. Janice did not engage in any virtual currency transactions during the year and wants to contribute to the Presidential Election Campaign Fund. Janice received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

During 2020, Janice reported the following income and expense items connected with her business.

Income from sale of articles	$95,000
Rent	16,500
Utilities	7,900
Supplies	1,800
Insurance	5,000
Travel (including meals of $1,200)	3,500

Janice purchased and placed in service the following fixed assets for her business. Janice wants to elect immediate expensing under 179, if possible.

• Furniture and fixtures (new) costing $21,000 on January 10
• Computer equipment (new) costing $12,400 on July 28

Janices itemized deductions include:

State income tax	$2,950
Home mortgage interest paid to First National Bank	8,000
Property taxes on home	2,500
Charitable contribution to her alma mater, State College	1,200

Janice did not keep a record of the sales tax she paid. The amount allowed by the sales tax table is $437. Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. She made estimated tax payments of $5,000 for 2020.

Required: Compute Janice Morgans 2020 Federal income tax payable (or refund due).

• Make realistic assumptions about any missing data.
• If an amount box does not require an entry or the answer is zero, enter "0".
• Enter all amounts as positive numbers.
• The taxpayer wants $3 to go to the to Presidential Election Campaign.
• It may be necessary to complete the other tax forms and schedules before completing Form 1040.
• Use the tax schedules (not the tax tables) included with this problem to compute the tax.
• If required, round your final answers to the nearest dollar.

2020 Tax Rate Schedules
SingleSchedule X										Head of householdSchedule Z
If taxable income is: Over		But not over		The tax is:				of the amount over			If taxable income is: Over		But not over		The tax is:				of the amount over
$ 0		$ 9,875		. . . . . .		10%		$ 0			$ 0		$ 14,100		. . . . . .		10%		$ 0
9,875		40,125		$ 987.50	+	12%		9,875			14,100		53,700		$ 1,410.00	+	12%		14,100
40,125		85,525		4,617.50	+	22%		40,125			53,700		85,500		6,162.00	+	22%		53,700
85,525		163,300		14,605.50	+	24%		85,525			85,500		163,300		13,158.00	+	24%		85,500
163,300		207,350		33,271.50	+	32%		163,300			163,300		207,350		31,830.00	+	32%		163,300
207,350		518,400		47,367.50	+	35%		207,350			207,350		518,400		45,926.00	+	35%		207,350
518,400		. . . . . .		156,235.00	+	37%		518,400			518,400		. . . . . .		154,793.50	+	37%		518,400
Married filing jointly or Qualifying widow(er)Schedule Y-1										Married filing separatelySchedule Y-2
If taxable income is: Over		But not over		The tax is:				of the amount over			If taxable income is: Over		But not over		The tax is:				of the amount over
$ 0		$ 19,750		. . . . . .		10%		$ 0			$ 0		$ 9,875		. . . . . .		10%		$ 0
19,750		80,250		$ 1,975.00	+	12%		19,750			9,875		40,125		$ 987.50	+	12%		9,875
80,250		171,050		9,235.00	+	22%		80,250			40,125		85,525		4,617.50	+	22%		40,125
171,050		326,600		29,211.00	+	24%		171,050			85,525		163,300		14,605.50	+	24%		85,525
326,600		414,700		66,543.00	+	32%		326,600			163,300		207,350		33,271.50	+	32%		163,300
414,700		622,050		94,735.00	+	35%		414,700			207,350		311,025		47,367.50	+	35%		207,350
622,050		. . . . . .		167,307.50	+	37%		622,050			311,025		. . . . . .		83,653.75	+	37%		311,025

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