Janice Morgan, age 24, is single and has no dependents. She is a free-lance writer. In January of 2018, she opened her own office 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 continueto 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 in connection with her business:

Income from Sale of Articles Rent

Utilities

Supplies

Insurance

Travel (including meals of $1,200)

$ 85,000 16,500 7,900 1,800 5,000 3,500

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

Furniture (new) on January 10, 2018 Computer equipment on July 28, 2018

Janice's itemized deductions include:

State income tax

Home mortgage interest paid to 1stNational Property taxes on home

Charitable contribution to State College

$ 21,000 12,400

$ 2,950 6,000 2,500 1,200

She did not keep a record of sales taxes paid. The amount from the sales tax table is $437. She reports interest income of $4,000 on certificates of deposit at Second National Bank. She made federal estimated tax payments of $3,000 for 2018.

Required:

Prepare Janice's 2018 federal income tax return. Make realistic assumptions for any missingdata. Round all amounts to the nearest dollar.

Forms required (download from IRS.gov):

• 2018 Form 1040
• 2018 Form 1040 Schedule 1
• 2018 Form 1040 Schedule 4
• 2018 Form 1040 Schedule 5
• 2018 Form 1040 Schedule A
• 2018 Form 1040 Schedule B
• 2018 Form 1040 Schedule C
• 2018 Form 1040 Schedule SE
• 2018 Form 4562

Be sure to complete all required information on every form.