Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 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 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.

During 2019, Janice reported the following income and expense items connected with her business.

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, 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	6,000
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 $3,000 for 2019.

Required: Compute Janice Morgans 2019 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.

PLEASE FILL IN BLANKS FOR SCHEDULE C FORM FOR 2019:

Attachment A OMB No. 1545-0074 SCHEDULEC Profit or Loss From Business (Form 1040 or 1040-SR) (Sole Proprietorship) 2019 Go to www.irs.gov/Schedule for instructions and the latest information. Department of the Treasury Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships generally Internal Revenue Service (99) must file Form 1065. Sequence No. 09 Name of proprietor Social security number (SSN) Janice Morgan 123-45-6782 Principal business or profession, including product or service (see instructions) B Enter code from instructions Writing 511000 Business name. If no separate business name, leave blank. D Employer ID number (EIN) (see instr.) Writers Anonymous Business address (including suite or room no.) 2751 Waldham Road City, town or post office, state, and ZIP code Accounting method: (1) Cash (2) - Accrual (3) - Other (specify) Did you "materially participate in the operation of this business during 2019? If "No," see instructions for limit on x Yes E F No losses H I x Yes No x Yes No If you started or acquired this business during 2019, check here.... Did you make any payments in 2019 that would require you to file Form(s) 1099? (see instructions).. If "Yes," did you or will you file required Forms 10992 Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked. Returns and allowances. 1 2 2 3 Subtract line 2 from line 1 4 Cost of goods sold (from line 42) Gross profit. Subtract line 4 from line 3 5 5 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions) 6 7 Gross income. Add lines 5 and 6.. 7 Part IT Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising 8 18 Office expense (see instructions).... 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans.... 19 instructions). 9 20 Rent or lease (see instructions): a Vehicles, machinery, and equipment 10 Commissions and fees .... 10 20a 11 Contract labor (see instructions) 11 b Other business property 20b 12 Depletion. 12 21 Repairs and maintenance .. 21 22 Supplies (not included in Part III) ... 22 23 Taxes and licenses 23 13 Depreciation and section 179 expense deduction (not included in Part III) (see instructions)... 14 Employee benefit programs (other than on line 19). ..... 13 24 Travel and meals: a Travel 24a 14 b Deductible meals (see 15 Insurance (other than health).. 15 instructions) 24b 16 Interest (see instr.): 25 Utilities 25 a Mortgage (paid to banks, etc.) 16a 26 Wages (less employment credits). 26 b Other. 16b 27a Other expenses (from line 48)... 27a 17 Legal and professional services 17 b Reserved for future use 27b 28 Total expenses before expenses for business use of home. Add lines 8 through 27a. 28 29 30 . 29 Tentative profit or loss). Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method (see instructions). Simplified method filers only: enter the total square footage of: (a) your home: and (b) the part of your home used for business: Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30. 31 Net profit or loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2 (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. } 32 If you have a loss, check the box that describes your investment in this activity (see instructions). If you checked 32a, enter the loss on both Schedule 1 (Form 1040 or 1040-SR), line 3 (or Form 1040-NR, line 13) and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 } instructions). Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. 31 32a All investment is at risk. 32b Some investment is not at risk