Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January 2013, Janice opened her own office located at 2751 Waldham road, Pleasat Hill, NM 88135. She called her buiness 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. Janice wants to contribute to the Presidentual Election campaign fund. During 2013, Janice had the following income and expense items connected with her business: Income from sales 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 are as follows: State income tax $3,000 Home mortgage interest paid to First Bank $6,000 Property taxes on home $1,500 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 has interest income of $4,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $3,000 for 2013. Compute Janice Morgans 2013 Federal income tax payable (or refund due.) If you use tax forms for your conputations, you will need forms 1040 and 4562 and schedules A,B,C.

Check Figures

Form 1040

Adjusted gross income $20,263

net tax payable (or refun due) for 2013 $59

Schedule A

Total itemized deductions $11,700

Schedule C $17,500

Form 4562

Line 22 $33,400