Note: This problem is for the 2019 tax year.

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 2 FORM FOR 2019:

1 1 N 3 SCHEDULE 2 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Taxes 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 02 Name(s) shown on Form 1040 or 1040-SR Your social security number Janice Morgan 123-45-6782 Part I Tax Alternative minimum tax. Attach Form 6251 . 2 Excess advance premium tax credit repayment. Attach Form 8962 3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b. Part II Other Taxes Self-employment tax. Attach Schedule SE. Unreported social security and Medicare tax from Form: a 4137 b 8919 5 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required. 7a Household employment taxes. Attach Schedule H Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required. 7b Taxes from: a Form 8959 b Form 8960 C Instructions; enter code(s) Section 965 net tax liability installment from Form 965-A... 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 15..... BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040 or 1040-SR) 2019 4 4 5 6 6 7a b 8 8 9 10 1 1 N 3 SCHEDULE 2 OMB No. 1545-0074 (Form 1040 or 1040-SR) Additional Taxes 2019 Department of the Treasury Attach to Form 1040 or 1040-SR. Attachment Internal Revenue Service Go to www.irs.gov/Form1040 for instructions and the latest information. Sequence No. 02 Name(s) shown on Form 1040 or 1040-SR Your social security number Janice Morgan 123-45-6782 Part I Tax Alternative minimum tax. Attach Form 6251 . 2 Excess advance premium tax credit repayment. Attach Form 8962 3 Add lines 1 and 2. Enter here and include on Form 1040 or 1040-SR, line 12b. Part II Other Taxes Self-employment tax. Attach Schedule SE. Unreported social security and Medicare tax from Form: a 4137 b 8919 5 Additional tax on IRAs, other qualified retirement plans, and other tax-favored accounts. Attach Form 5329 if required. 7a Household employment taxes. Attach Schedule H Repayment of first-time homebuyer credit from Form 5405. Attach Form 5405 if required. 7b Taxes from: a Form 8959 b Form 8960 C Instructions; enter code(s) Section 965 net tax liability installment from Form 965-A... 9 10 Add lines 4 through 8. These are your total other taxes. Enter here and on Form 1040 or 1040-SR, line 15..... BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040 or 1040-SR) 2019 4 4 5 6 6 7a b 8 8 9 10