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1040 NOTE: THIS BOOKLET DOES NOT CONTAIN TAX FORMS INSTRUCTIONS Including Instructions for Schedules A, C, D, E, F, J, R, and SE 2011 makes doing...

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 2011, Janice had the following income and expense items connected with her business:
Income from sales of articles $105,000
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, 2011.
• Computer equipment (new) costing $40,000 on July 28, 2011.
Janice did not elect immediate expensing under 179. She elected not to take addional first year depreciation.
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 $5,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $17,000 for 2011.
Compute Janice Morgan’s 2011 Federal income tax payable (or refund due.) If you use tax forms for your conputations, you will need forms 1040 and 4562 and schedules A,B,C, and SE.
10 40 INSTRUCTIONS FUTURE DEVELOPMENTS The IRS has created a page on IRS.gov for information about Form 1040 and its instructions at www.irs.gov/form1040 . Information about any future developments affecting Form 1040 (such as legislation enacted after we release it) will be posted on that page. 2011 Get a faster refund, reduce errors, and save paper. For more information on IRS e-Fle and Free File, see Options for e-Fling your returns in these instructions or click on IRS e-Fle at IRS.gov. Department of the Treasury Internal Revenue Service IRS.gov IRS makes doing your taxes faster and easier. is the fast, safe, and free way to prepare and e-fle your taxes. See www.irs.gov/Freefle. MAILING YOUR RETURN If you ±le a paper return, you may be mailing it to a different address this year. NEW FORMS You may have to report your capital gains and losses on new Form 8949 and report the totals on Schedule D. If you have foreign ±nancial assets, you may have to ±le new Form 8938. For details on these and other changes, see What’s New in these instructions. NOTE: THIS BOOKLET DOES NOT CONTAIN TAX FORMS Including Instructions for Schedules A, C, D, E, F, J, R, and SE Cat. No. 11325E
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Dear Taxpayer, A Message From the Commissioner As we enter the 2012 tax filing season, the IRS is always looking to find new and innovative ways to help you get your tax questions answered. The newest is our smartphone application, IRS2Go, which can be downloaded for free. You can do a number of things with this app, such as checking the status of your tax refund or subscribing to tax tips. We also continue to enhance our website, IRS.gov, which is the most convenient way to get tax information. We also post videos on YouTube to help taxpayers understand their tax obligations. Check these out at www.youtube. com/irsvideos . Our news feed on Twitter, @IRSnews, is another excellent source of tax information. Keep in mind that a number of federal tax incentives that were enacted in 2009 as part of the American Recovery and Reinvestment Act are still in effect for 2011. These include the American opportunity credit and the expanded earned income credit. Make sure to check to see if you qualify for these and other important deductions and credits. Remember that the fastest, safest and easiest way to get your refund is to e-file and use direct deposit. E-file has become so popular that nearly eight out of 10 individual taxpayers now e-file their return. It’s now the first choice for about 112 million taxpayers. Taxpayers below a certain income level can qualify to use free tax preparation software through the Free File program. Plus, everyone can e-file for free using a fillable form available at IRS.gov. We know that it takes time to prepare and file a tax return, but the IRS wants to help you fulfill your tax obligations and will continue to go the extra mile to provide assistance. Sincerely, Douglas H. Shulman The IRS Mission Provide America’s taxpayers top quality service by helping them understand and meet their tax responsibilities and by applying the tax law with integrity and fairness to all. -2-
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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 2011, Janice had the following income and expense items connected with her business: Income from sales of articles $105,000 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, 2011. Computer equipment (new) costing $40,000 on July 28, 2011. Janice did not elect immediate expensing under 179. She elected not to take addional first year depreciation. 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 $5,000 on certificates of deposit at Second Bank. Janice makes estimated tax payments of $17,000 for 2011. Compute Janice Morgan’s 2011 Federal income tax payable (or refund due.) If you use tax forms for your conputations, you will need forms 1040 and 4562 and schedules A,B,C, and SE.
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