Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2021, 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 2021, 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’s itemized deductions include:

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. Janice makes estimated tax payments of $5,000 for 2021. Compute Janice Morgan’s 2021 Federal income tax payable (or refund due), and complete her 2021 tax return using appropriate forms and schedules. Suggested software: ProConnect Tax.

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Income from sale of articles Rent Utilities Supplies Insurance Travel (including restaurant meals of $600) $95,000 16,500 7,900 1,800 5,000 2,900