Question
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2018, Janice opened her own office located at
Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2018, 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 tax- payer. She lives at 132 Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6789. Janices parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election Campaign Fund. During 2018, Janice reported the following income and expense items connected with her business. Tax Return Problem
Income from sale of articles $ 85,000
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.
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 Bank. $ 6,000
Property taxes on home $ 2,500
Charitable contributions. $ 1,200
Janice did not keep a record of the sales tax she paid. The pertinent amount from the sales tax table is $437. Janice reports interest income of $4,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $3,000 for 2015. Compute Janice Morgans 2018 Federal income tax payable (or refund due). If you use tax forms for your computations, you will need Forms 1040 and 4562 and Schedules A, B, and C. Forms: 1040 pages 1 and 2; Schedules 1, 2, 3, A, B, C, SE; Form 4562
Check figures AGI $20,263
Taxable Income $6090
Itemized Deductions : $ 12,650
Please I need help to Prepare a brief top sheet summarizing the factual information (apart of the problem) in the format of the tax formula.
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