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Janice Morgan, age 32, is single and has no dependents. She is a freelance writer. In January 2012, Janice opened her own office located at 22751 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 123-45-6789. Janice wants to contribute to the Presidential Election Campaign Fund. During 2012, Janice had 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:

Furniture and fixtures (new) costing $17,000 on January 10, 2012.
Computer equipment (new) costing $40,000 on July 28, 2012.

Janice elected immediate expending under Section 179.

Janice's itemized deductions are as follows:
State income tax $3,000
Home mortgage interest 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 $3,00 for 2012.

Compute Janice Morgan's 2012 Federal income tax payable (or refund due).

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Please see attached tax forms. The only discrepancy may be in the ...

Solution Summary

Sample of filing 2012 federal taxes for a self-employed, single woman with no dependents.

See Also This Related BrainMass Solution

Tax forms: Donna Harp

At the beginning of the current year, Donna Harp was employed as a cinematographer by Farah Movie, Inc., a motion picture company in Los Angeles, California. In June, she accepted a new job with Ocala Production in Orlando, Florida. Donna is single and her Social Security number is 223-77-6793. She sold her house in California on August 10 for $500,000. She paid a $14,000 sales commission. The house was acquired on March 23, 1987, for $140,000.

The cost of transporting her household goods and personal effects from California to Orlando amounted to $2,350. To travel from California to Florida, she paid travel and lodging costs of $370 and $100 for meals.
On July 15, she purchased a house for $270,000 on 1225 Minnie Lane in Orlando. To purchase the house, she incurred a 20-year mortgage for $170,000. To obtain the loan, she paid points of $3,400. The $3,600 of property taxes for the house in Orlando were prorated with $1,950 being apportioned to the seller and $1,650 being apportioned to the buyer. In December of the current year she paid $3,600 for property taxes.

Other information related to her return:
Salary from Farah Movie, Inc. $30,000
Salary from Ocala Production, Inc. 70,000
Federal income taxes withheld by Farah 6,000
Federal income taxes withheld by Ocala 22,000
FICA taxes withheld by Farah 2,295
FICA taxes withheld by Ocala 5,355
Dividend income 10,000

Interest paid for mortgage:
Home in California 6,780
Home in Orlando 3,800
Property taxes paid in California 4,100
Sales taxes paid in California and Florida 3,125
State income taxes paid in California 2,900
Interest income from Sun National Bank 1,800

Prepare Form 1040 including Schedules A, B, and D and Form 3903. Use the worksheet on page 12-23 to determine the amount of recognized gain on the sale of the residence.

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