Reference no: EM13592863
Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January 2011, 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 2012, 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:
• Furniture and fixtures (new) costing $17,000 on January 10, 2012.
• Computer equipment (new) costing $40,000 on July 28, 2012
- Janice elected immediate expensing under section179.
- Janice's 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 amount from the sales tax table is $437.Janice has interest income of $20,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $3,000 for 2012.Compute Janice Morgan's 2012 Federal income tax payable If you use tax forms for your conputations, you will need forms 1040 and 4562 and schedules A,B,C.