SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service Name of proprietor Janice Morgan...

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SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service Name of proprietor Janice Morgan Profit or Loss From Business (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. A Principal business or profession, including product or service (see instructions) Freelance Writer C Business name. If no separate business name, leave blank. Writers Anonymous E Business address (including suite or room no.) 2751 Waldham Road City, town or post office, state, and ZIP code Pleasant Hill NM 88135 F Accounting method: (1) Cash (2) Accrual (3) Other (specify) G OMB No. 1545-0074 Social security number (SSN) 123-45-6782 2022 Attachment Sequence No. 09 B Enter code from instructions 611000 D Employer ID number (EIN) (see instr.) Did you "materially participate" in the operation of this business during 2022? If "No," see instructions for limit on losses. Yes No H If you started or acquired this business during 2022, check here... I Did you make any payments in 2022 that would require you to file Form(s) 1099? See instructions ... Part I If "Yes," did you or will you file required Form(s) 1099? .... Income . Yes No Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked ... 2 Returns and allowances . . . 3 Subtract line 2 from line 1 4 Cost of goods sold (from line 42) ... 5 Gross profit. Subtract line 4 from line 3.... 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions).. 7 Gross income. Add lines 5 and 6 .... Part II 0 1 2 3 4 5 6 7 Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising ... 8 18 Office expense (see instructions).... 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans. 19 instructions) ... 9 20 Rent or lease (see instructions): . . . . 10 Commissions and fees. ... 11 Contract labor (see instructions) 12 Depletion... 10 a Vehicles, machinery, and equipment 11 b Other business property 20a 20b 12 21 Repairs and maintenance.. 13 Depreciation and section 179 22 Supplies (not included in Part III) ... 22 21 22 expense deduction (not included 23 Taxes and licenses 23 Part II 8 Expenses. Enter expenses for business use of your home only on line 30. Advertising... 9 Car and truck expenses (see 8 18 Office expense (see instructions) .... 18 19 Pension and profit-sharing plans.... 19 instructions) ... 9 10 Commissions and fees . . . . . 10 20 Rent or lease (see instructions): . . . . a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 b Other business property. 20b 12 Depletion.. 13 Depreciation and section 179 expense deduction (not included 12 12 21 Repairs and maintenance.. 21 22 Supplies (not included in Part III) ... 22 23 Taxes and licenses. 23 in Part III) (see instructions) . . . 13 24 Travel and meals: 14 Employee benefit programs a Travel . . 24a (other than on line 19) . . . . . . 15 Insurance (other than health) .. 14 b Deductible meals (see 15 instructions). 24b 16 Interest (see instr.): 25 Utilities.... 25 a Mortgage (paid to banks, etc.) b Other .. 16a 26 Wages (less employment credits) ... 26 16b 27a Other expenses (from line 48) .... 27a 17 Legal and professional services 17 b Reserved for future use. 27b b Other. 17 Legal and professional services 16b 17 27a Other expenses (from line 48)..... b Reserved for future use 27a 27b 28 28 Total expenses before expenses for business use of home. Add lines 8 through 27a. 29 Tentative profit or (loss). Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. 29 Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: _. Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30... 30 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. BAA For Paperwork Reduction Act Notice, see the separate instructions. 31 32a All investment is at risk. 32b Some investment is not at risk. Schedule C (Form 1040) 2022 Instructions Note: This problem is for the 2022 tax year. Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2022, 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. During 2022, Janice reported the following income and expense items connected with her business. Income from sale of articles Rent Utilities Supplies $95,000 16,500 7,900 1,800 5,000 Insurance Travel (including restaurant meals of $600) 2,900 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: State income tax $2,950 Home mortgage interest paid to First National Bank 8,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 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 2022. SCHEDULE C (Form 1040) Department of the Treasury Internal Revenue Service Name of proprietor Janice Morgan Profit or Loss From Business (Sole Proprietorship) Go to www.irs.gov/ScheduleC for instructions and the latest information. Attach to Form 1040, 1040-SR, 1040-NR, or 1041; partnerships must generally file Form 1065. A Principal business or profession, including product or service (see instructions) Freelance Writer C Business name. If no separate business name, leave blank. Writers Anonymous E Business address (including suite or room no.) 2751 Waldham Road City, town or post office, state, and ZIP code Pleasant Hill NM 88135 F Accounting method: (1) Cash (2) Accrual (3) Other (specify) G OMB No. 1545-0074 Social security number (SSN) 123-45-6782 2022 Attachment Sequence No. 09 B Enter code from instructions 611000 D Employer ID number (EIN) (see instr.) Did you "materially participate" in the operation of this business during 2022? If "No," see instructions for limit on losses. Yes No H If you started or acquired this business during 2022, check here... I Did you make any payments in 2022 that would require you to file Form(s) 1099? See instructions ... Part I If "Yes," did you or will you file required Form(s) 1099? .... Income . Yes No Yes No Part I Income 1 Gross receipts or sales. See instructions for line 1 and check the box if this income was reported to you on Form W-2 and the "Statutory employee" box on that form was checked ... 2 Returns and allowances . . . 3 Subtract line 2 from line 1 4 Cost of goods sold (from line 42) ... 5 Gross profit. Subtract line 4 from line 3.... 6 Other income, including federal and state gasoline or fuel tax credit or refund (see instructions).. 7 Gross income. Add lines 5 and 6 .... Part II 0 1 2 3 4 5 6 7 Expenses. Enter expenses for business use of your home only on line 30. 8 Advertising ... 8 18 Office expense (see instructions).... 18 9 Car and truck expenses (see 19 Pension and profit-sharing plans. 19 instructions) ... 9 20 Rent or lease (see instructions): . . . . 10 Commissions and fees. ... 11 Contract labor (see instructions) 12 Depletion... 10 a Vehicles, machinery, and equipment 11 b Other business property 20a 20b 12 21 Repairs and maintenance.. 13 Depreciation and section 179 22 Supplies (not included in Part III) ... 22 21 22 expense deduction (not included 23 Taxes and licenses 23 Part II 8 Expenses. Enter expenses for business use of your home only on line 30. Advertising... 9 Car and truck expenses (see 8 18 Office expense (see instructions) .... 18 19 Pension and profit-sharing plans.... 19 instructions) ... 9 10 Commissions and fees . . . . . 10 20 Rent or lease (see instructions): . . . . a Vehicles, machinery, and equipment 20a 11 Contract labor (see instructions) 11 b Other business property. 20b 12 Depletion.. 13 Depreciation and section 179 expense deduction (not included 12 12 21 Repairs and maintenance.. 21 22 Supplies (not included in Part III) ... 22 23 Taxes and licenses. 23 in Part III) (see instructions) . . . 13 24 Travel and meals: 14 Employee benefit programs a Travel . . 24a (other than on line 19) . . . . . . 15 Insurance (other than health) .. 14 b Deductible meals (see 15 instructions). 24b 16 Interest (see instr.): 25 Utilities.... 25 a Mortgage (paid to banks, etc.) b Other .. 16a 26 Wages (less employment credits) ... 26 16b 27a Other expenses (from line 48) .... 27a 17 Legal and professional services 17 b Reserved for future use. 27b b Other. 17 Legal and professional services 16b 17 27a Other expenses (from line 48)..... b Reserved for future use 27a 27b 28 28 Total expenses before expenses for business use of home. Add lines 8 through 27a. 29 Tentative profit or (loss). Subtract line 28 from line 7. 30 Expenses for business use of your home. Do not report these expenses elsewhere. Attach Form 8829 unless using the simplified method. See instructions. 29 Simplified method filers only: Enter the total square footage of (a) your home: and (b) the part of your home used for business: _. Use the Simplified Method Worksheet in the instructions to figure the amount to enter on line 30... 30 31 Net profit or (loss). Subtract line 30 from line 29. If a profit, enter on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see instructions). Estates and trusts, enter on Form 1041, line 3. If a loss, you must go to line 32. 32 If you have a loss, check the box that describes your investment in this activity. See instructions. If you checked 32a, enter the loss on both Schedule 1 (Form 1040), line 3, and on Schedule SE, line 2. (If you checked the box on line 1, see the line 31 instructions.) Estates and trusts, enter on Form 1041, line 3. If you checked 32b, you must attach Form 6198. Your loss may be limited. BAA For Paperwork Reduction Act Notice, see the separate instructions. 31 32a All investment is at risk. 32b Some investment is not at risk. Schedule C (Form 1040) 2022 Instructions Note: This problem is for the 2022 tax year. Janice Morgan, age 24, is single and has no dependents. She is a freelance writer. In January 2022, 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. During 2022, Janice reported the following income and expense items connected with her business. Income from sale of articles Rent Utilities Supplies $95,000 16,500 7,900 1,800 5,000 Insurance Travel (including restaurant meals of $600) 2,900 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: State income tax $2,950 Home mortgage interest paid to First National Bank 8,000 Property taxes on home 2,500 Charitable contribution to her alma mater, State College 1,200 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 2022.