Janice and Richard Morgan are married and have no dependents (MFJ). Janice works as an employee from Worldwide Publishing and also as a freelance writer

Janice and Richard Morgan are married and have no dependents (MFJ). Janice works as an employee from Worldwide Publishing and also as a freelance writer. She called her freelance writing business "Writers Anonymous" (self employed). Richard is an employee, earning a W-2 wage. They live at 132 Stone Avenue, Pleasant Hill, NM 88135. Richard Morgan is an employee working for a local company. In his spare time he started a fly fishing business (deemed a hobby). Richard sells fly tying materials, as well as unique fly hooks. He often travels to various fishing locations to "test" his "flies" (i.e., fishing hooks). Richard had $16,000 in sales, and $10,000 in direct costs of goods sold. That is, $6,000 in gross income. Additionally, Richard had $17,000 in travel related expenses. During the year, Janice invested $2,000 (tax basis and at-risk basis) into ABC limited partnership (a passive investment). Her share of the limited partnership income for the year was $6,000, and Janice received a $5,000 distribution from ABC limited partnership. Hint \#3 During the year, Janice invested $5,500 (tax basis and at-risk basis) into DEF limited partnership (a passive investment). Her share of the limited partnership loss for the year was $6,500, and Janice received a $3,000 distribution from DEF limited partnership. Hint #3 Additionally, Janice had: (1) Both Janice and Richard made a $6,000 contribution each to their traditional IRA accounts. Janice's employer, Worldwide publishing, offers a 401k that Janice contributes to. Richard's employer does not offer a 401k. (2) Sale of LMN publicly traded stock on 8/15/2022 for $7,000 (originally purchased for $4,000 on 1/15/2018 ) (3) Sale of QRS publicly traded stock on 10/15/2022 for $2,000 (originally purchased for $9,000 on 12/15/2021) (4) Sale of TUV publicly traded stock on 4/15/2022 for $3,500 (originally purchased for $5,500 on 7/15/2021) (5) What is the average Self Employment Tax rate on this tax return? Is it a reasonable rate, given that it is below the 15.3% nominal rate? Explain why or why not a. Average rate = SE tax (from Schedule 2) divided by Schedule C net income (6) The Morgan's donated $7,000 to charitable organizations. How much did this deduction decrease their taxable income? How much money did this save them