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 THE BLANKS FOR THE FOLLOWING SCHEDULE B FORM FOR 2019:

SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040 or 1040-SR) 2019 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040 or 1040-SR. Sequence No. 08 Name(s) shown on return Your social security number Janice Morgan 123-45-6782 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer Amount used the property as a personal residence, see the instructions and list this interest Interest first. Also, show that buyer's social security number and address (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) 1 Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 2 Add the amounts on line 1 2 3 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b Note: If line 4 is over $1,500, you must complete Part III. 4 Amount Part II 5 List name of payer Ordinary Dividends (See instructions and the instructions for Form 1040 or 1040- SR, line 3b.) 5 6 Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b 6 Note: If line 5 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and Trusts country? See instructions.. Caution: If required, If 'Yes,' are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts failure to file FinCEN (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its Form 114 may result instructions for filing requirements and exceptions to those requirements in substantial penalties. See If you are required to file FinCEN Form 114, enter the name of the foreign country where the instructions. financial account is located During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes, you may have to file Form 3520. See instructions ........ BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule B (Form 1040 or 1040-SR) 2019 Yes No b 8 SCHEDULE B OMB No. 1545-0074 Interest and Ordinary Dividends (Form 1040 or 1040-SR) 2019 Department of the Treasury Go to www.irs.gov/Schedule for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040 or 1040-SR. Sequence No. 08 Name(s) shown on return Your social security number Janice Morgan 123-45-6782 Part 1 1 List name of payer. If any interest is from a seller-financed mortgage and the buyer Amount used the property as a personal residence, see the instructions and list this interest Interest first. Also, show that buyer's social security number and address (See instructions and the instructions for Forms 1040 and 1040-SR, line 2b.) 1 Note: If you received a Form 1099-INT, Form 1099-OID, or substitute statement from a brokerage firm, list the firm's name as the payer and enter the total interest shown on that form. 2 Add the amounts on line 1 2 3 3 Excludable interest on series EE and I U.S. savings bonds issued after 1989. Attach Form 8815 4 Subtract line 3 from line 2. Enter the result here and on Form 1040 or 1040-SR, line 2b Note: If line 4 is over $1,500, you must complete Part III. 4 Amount Part II 5 List name of payer Ordinary Dividends (See instructions and the instructions for Form 1040 or 1040- SR, line 3b.) 5 6 Note: If you received a Form 1099-DIV or substitute statement from a brokerage firm, list the firm's name as the payer and enter the ordinary dividends shown on that form. Add the amounts on line 5. Enter the total here and on Form 1040 or 1040-SR, line 3b 6 Note: If line 5 is over $1,500, you must complete Part III. Part III You must complete this part if you (a) had over $1,500 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Foreign 7a At any time during 2019, did you have a financial interest in or signature authority over a financial Accounts account (such as a bank account, securities account, or brokerage account) located in a foreign and Trusts country? See instructions.. Caution: If required, If 'Yes,' are you required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts failure to file FinCEN (FBAR), to report that financial interest or signature authority? See FinCEN Form 114 and its Form 114 may result instructions for filing requirements and exceptions to those requirements in substantial penalties. See If you are required to file FinCEN Form 114, enter the name of the foreign country where the instructions. financial account is located During 2019, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If "Yes, you may have to file Form 3520. See instructions ........ BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule B (Form 1040 or 1040-SR) 2019 Yes No b 8