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 taxpayer. 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.

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 from the sales tax table is $437.

Janice reports interest income of $4,000 on certificates of deposit at Second National Bank. Janice makes estimated tax payments of $3,000 for 2018.

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.

1040 n 1 (99) Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing statusSingle Married filing jointly Married filing separately Your first name and initial Janice Your standard deduction: If joint retum, spouse's first name and initial Head of householdQualifying widow(er) Last name Your social security number Morgan Someone can claim you as a dependent You were born before Ja You are blind Last name Spouse's social security number Spouse standard deduction: Someone can claim your spouse as a depent Spouse was born before January 2, 1954 Full-year health care coverage or exempt (see inst.) Spouse is blind Home address (number and street). If you have a P.O. box, see instructions 132 Stone Avenue Spouse itemizes on a separate return or you were dual-status alien Apt. no Presidential Election Campaign (see inst.) YouSpouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Pleasant Hill, NM 88135 Dependents (see instructions) (1) First name If more than four dependents, see inst. and here (2) Social security number (3) Relationship to you (4) if qualifies for (see inst.): Last name Child tax credit Credit for other dependents Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. If the IRS sent you an ldentity Protection PIN, en here (see inst Your signature Date Your occupation If the IRS sent you an ldentity Protection PIN, enter it here (see inst Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN Firm's EIN Check i: Paid Preparer Use Only 3rd Party Designee Self-employed Firm's name Phone no Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat. No. 11320B Form 1040 (2018) Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Fom(s) W-2. . 2a Tax-exempt interest. .. 3a Qualified dividends.. 4a IRAs, pensions, and annuities. 5a Social security benefits . 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, b Taxable interest b Ordinary dividends . b Taxable amount... b Taxable amount... Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. subtract Schedule 1 , line 36, from line 6 " " Standard deduction or itemized deductions (from Schedule A) Standard " " " . . . . . . . Deduction for- 8 . Single or married $12,000 Married filing separately,9 Qualified business income deduction (see instructions)... . .. 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-0... (check if any from:Forms) 8814 2 b Add any amount from Schedule 2 and check here.... Form 4972 3 jointly or Qualifying 11 a Tax (see inst.) widow(er), $24,000 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter-0 . Head of b Add any amount from Schedule 3 and check here12 $18,000 If you checked 114 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . . 14 any box under Standard deduction, see instructions. 15 Total tax. Add lines 13 and 14.................... 16 Federal income tax withheld from Forms W-2 and 1099...... 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid... 20a Amount of line 19 you want refunded to you. If Fom 8888 is attached, check here.... nts 18 19 Refund Direct deposit? b Routing number See instructions. c Type:checking Savings d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount YouOwe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions...22 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2018) 1040 n 1 (99) Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Filing statusSingle Married filing jointly Married filing separately Your first name and initial Janice Your standard deduction: If joint retum, spouse's first name and initial Head of householdQualifying widow(er) Last name Your social security number Morgan Someone can claim you as a dependent You were born before Ja You are blind Last name Spouse's social security number Spouse standard deduction: Someone can claim your spouse as a depent Spouse was born before January 2, 1954 Full-year health care coverage or exempt (see inst.) Spouse is blind Home address (number and street). If you have a P.O. box, see instructions 132 Stone Avenue Spouse itemizes on a separate return or you were dual-status alien Apt. no Presidential Election Campaign (see inst.) YouSpouse City, town or post office, state, and ZIP code. If you have a foreign address, attach Schedule 6. Pleasant Hill, NM 88135 Dependents (see instructions) (1) First name If more than four dependents, see inst. and here (2) Social security number (3) Relationship to you (4) if qualifies for (see inst.): Last name Child tax credit Credit for other dependents Sign Here Joint return? See instructions. Keep a copy for your records. Under penalties of perjury, I declare that I have examined this retum and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. If the IRS sent you an ldentity Protection PIN, en here (see inst Your signature Date Your occupation If the IRS sent you an ldentity Protection PIN, enter it here (see inst Spouse's signature. If a joint return, both must sign. Date Spouse's occupation Preparer's name Preparer's signature PTIN Firm's EIN Check i: Paid Preparer Use Only 3rd Party Designee Self-employed Firm's name Phone no Firm's address For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions Cat. No. 11320B Form 1040 (2018) Form 1040 (2018) Page 2 1 Wages, salaries, tips, etc. Attach Fom(s) W-2. . 2a Tax-exempt interest. .. 3a Qualified dividends.. 4a IRAs, pensions, and annuities. 5a Social security benefits . 6 Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 7Adjusted gross income. If you have no adjustments to income, enter the amount from line 6; otherwise, b Taxable interest b Ordinary dividends . b Taxable amount... b Taxable amount... Attach Form(s) W-2. Also attach Form(s) W-2G and 1099-R if tax was withheld. subtract Schedule 1 , line 36, from line 6 " " Standard deduction or itemized deductions (from Schedule A) Standard " " " . . . . . . . Deduction for- 8 . Single or married $12,000 Married filing separately,9 Qualified business income deduction (see instructions)... . .. 10 Taxable income. Subtract lines 8 and 9 from line 7. If zero or less, enter-0... (check if any from:Forms) 8814 2 b Add any amount from Schedule 2 and check here.... Form 4972 3 jointly or Qualifying 11 a Tax (see inst.) widow(er), $24,000 12 a Child tax credit/credit for other dependents 13 Subtract line 12 from line 11. If zero or less, enter-0 . Head of b Add any amount from Schedule 3 and check here12 $18,000 If you checked 114 Other taxes. Attach Schedule 4 . . . . . . . . . . . . . . . . . . . . 14 any box under Standard deduction, see instructions. 15 Total tax. Add lines 13 and 14.................... 16 Federal income tax withheld from Forms W-2 and 1099...... 17 Refundable credits: a EIC (see inst.) b Sch. 8812 c Form 8863 Add any amount from Schedule 5 18 Add lines 16 and 17. These are 19 If line 18 is more than line 15, subtract line 15 from line 18. This is the amount you overpaid... 20a Amount of line 19 you want refunded to you. If Fom 8888 is attached, check here.... nts 18 19 Refund Direct deposit? b Routing number See instructions. c Type:checking Savings d Account number 21 Amount of line 19 you want applied to your 2019 estimated tax 21 Amount YouOwe 22 Amount you owe. Subtract line 18 from line 15. For details on how to pay, see instructions...22 23 Estimated tax penalty (see instructions) 23 Go to www.irs.gov/Form 1040 for instructions and the latest information. Form 1040 (2018)