Note: This problem is for the 2020 tax year. Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6782. Janice's parents continue to provide health insurance questions in ProConnect Tax should be ignored. During 2020, Janice reported the following income and expense items connected with her business. 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 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 Morgan's 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. Complete Janice Morgan's Schedule SE for 2020. Hint: Compute OASDI and HI separately. If required, round amounts to the nearest dollar. 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. 1 a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a,1b, and 2 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3.. Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter 0 - and continue . . . . . . 5a Enter your church employee income from Form W-2. See instructions for $8,460, or (b) your net farm profits (2) were less than $6,107. 15 Enter the smaller of: two-thirds (2/3) of gross farm income (1) (not less than zero) or $5,640. Also, include (1) From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14, code B. (3) From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. (2) From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A (4) From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. -minus the amount you would have entered on line 1b had you not used the optional method ... BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 2020 Schedule SE (Form 1040) 2020 Janice Morgan 123-45-6782 Attachment Sequence No. 17 Page 2 Part III Maximum Deferral of Self-Employment Tax Payments Schedule SE (Form 1040) 2020 Janice Morgan 123456782 Attachment Sequence No. 17 Page 2 Part III Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20 , and enter 0 - on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31,2020 19 If line 18 is more than zero, multiply line 18 by 92.35%(0.9235); otherwise, enter the amount from line 18 .. 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 . . 21 Combine lines 19 and 20 If line 5b is zero, skip line 22 and enter 0 on line 23. 22 Enter the portion of line 5 a that can be attributed to March 27, 2020, through December 31, 2020 . . . . . . . 23 Multiply line 22 by 92.35%(0.9235). 24 Add lines 21 and 23 26 Multiply line 25 by 6.2%(0.062). Enter here and see the instructions for line 12 BAA Schedule SE (Form 1040) 2020 Feedback Check My Work Note: This problem is for the 2020 tax year. Stone Avenue, Pleasant Hill, NM 88135. Her Social Security number is 123-45-6782. Janice's parents continue to provide health insurance questions in ProConnect Tax should be ignored. During 2020, Janice reported the following income and expense items connected with her business. 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 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 Morgan's 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. Complete Janice Morgan's Schedule SE for 2020. Hint: Compute OASDI and HI separately. If required, round amounts to the nearest dollar. 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. 1 a Net farm profit or (loss) from Schedule F, line 34, and farm partnerships, Schedule K-1 (Form 1065), box 14, code A. b If you received social security retirement or disability benefits, enter the amount of Conservation Reserve Program payments included on Schedule F, line 4b, or listed on Schedule K-1 (Form 1065), box 20, code AH Skip line 2 if you use the nonfarm optional method in Part II. See instructions. 2 Net profit or (loss) from Schedule C, line 31; and Schedule K-1 (Form 1065), box 14, code A (other than farming). See instructions for other income to report or if you are a minister or member of a religious order 3 Combine lines 1a,1b, and 2 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3.. Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter 0 - and continue . . . . . . 5a Enter your church employee income from Form W-2. See instructions for $8,460, or (b) your net farm profits (2) were less than $6,107. 15 Enter the smaller of: two-thirds (2/3) of gross farm income (1) (not less than zero) or $5,640. Also, include (1) From Sch. F, line 9; and Sch. K-1 (Form 1065), box 14, code B. (3) From Sch. C, line 31; and Sch. K-1 (Form 1065), box 14, code A. (2) From Sch. F, line 34; and Sch. K-1 (Form 1065), box 14, code A (4) From Sch. C, line 7; and Sch. K-1 (Form 1065), box 14, code C. -minus the amount you would have entered on line 1b had you not used the optional method ... BAA For Paperwork Reduction Act Notice, see your tax return instructions. Schedule SE (Form 1040) 2020 Schedule SE (Form 1040) 2020 Janice Morgan 123-45-6782 Attachment Sequence No. 17 Page 2 Part III Maximum Deferral of Self-Employment Tax Payments Schedule SE (Form 1040) 2020 Janice Morgan 123456782 Attachment Sequence No. 17 Page 2 Part III Maximum Deferral of Self-Employment Tax Payments If line 4c is zero, skip lines 18 through 20 , and enter 0 - on line 21. 18 Enter the portion of line 3 that can be attributed to March 27, 2020, through December 31,2020 19 If line 18 is more than zero, multiply line 18 by 92.35%(0.9235); otherwise, enter the amount from line 18 .. 20 Enter the portion of lines 15 and 17 that can be attributed to March 27, 2020, through December 31, 2020 . . 21 Combine lines 19 and 20 If line 5b is zero, skip line 22 and enter 0 on line 23. 22 Enter the portion of line 5 a that can be attributed to March 27, 2020, through December 31, 2020 . . . . . . . 23 Multiply line 22 by 92.35%(0.9235). 24 Add lines 21 and 23 26 Multiply line 25 by 6.2%(0.062). Enter here and see the instructions for line 12 BAA Schedule SE (Form 1040) 2020 Feedback Check My Work