Note: This problem is for the 2020 tax year.

Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2020, 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. Janice received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored.

During 2020, Janice reported the following income and expense items connected with her business.

Income from sale of articles	$95,000
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	8,000
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 $5,000 for 2020.

Required: Compute Janice Morgans 2020 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.

BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040(2020) Complete Janice Morgan's Schedule 1 below for 2020. 12 Health savings account deduction. Attach Form 8889 BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2020 BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040) 2020 SCHEDULE B (Form 1040) Department of the Treasury Internal Revenue Service (99) Note: If line 6 is over $1,500, you must complete Part III. Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361 , but you had $400 or more of other net earnings from self-employment, check here and continue with Part I . Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. Part II Optional Methods To Figure Net Earnings (see instructions) BAA Schedule SE (Form 1040) 2020 Note. You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricultural or horticultural cooperative. See instructions. Use this form if your taxable income, before your qualified business income deduction, is at or below $163,300($326,600 if married filing jointly), and you aren't a patron of an agricultural or horticultural cooperative. Bi Note: If you have any listed property, complete Part V before you complete Part I. 2020 Tax Rate Schedules BAA For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Form 1040(2020) Complete Janice Morgan's Schedule 1 below for 2020. 12 Health savings account deduction. Attach Form 8889 BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 1 (Form 1040) 2020 BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule 2 (Form 1040) 2020 SCHEDULE B (Form 1040) Department of the Treasury Internal Revenue Service (99) Note: If line 6 is over $1,500, you must complete Part III. Part I Self-Employment Tax Note: If your only income subject to self-employment tax is church employee income, see instructions for how to report your income and the definition of church employee income. A If you are a minister, member of a religious order, or Christian Science practitioner and you filed Form 4361 , but you had $400 or more of other net earnings from self-employment, check here and continue with Part I . Skip lines 1a and 1b if you use the farm optional method in Part II. See instructions. Part II Optional Methods To Figure Net Earnings (see instructions) BAA Schedule SE (Form 1040) 2020 Note. You can claim the qualified business income deduction only if you have qualified business income from a qualified trade or business, real estate investment trust dividends, publicly traded partnership income, or a domestic production activities deduction passed through from an agricultural or horticultural cooperative. See instructions. Use this form if your taxable income, before your qualified business income deduction, is at or below $163,300($326,600 if married filing jointly), and you aren't a patron of an agricultural or horticultural cooperative. Bi Note: If you have any listed property, complete Part V before you complete Part I. 2020 Tax Rate Schedules