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Julia Williams, age 23, is single and has no dependents. She is an accountant. She lives at 1625 N. Michigan Avenue, Chicago, IL 60601. Her Social Security number is 123-45- 6789. In January, 2018, Julia opened her own CPA office located at 821 N. State Street, Chicago, IL 60601. Her business is called Williams Accounting Services. Julia is a cash basis taxpayer. Julias parents continue to provide health insurance for her under their policy. Janice wants to contribute to the Presidential Election Campaign Fund. During 2018, Julia reported the following income and expense items connected with her business Service fee income $93,500

Office rent expense 18,000

Utilities expense 8,200

Supplies expense 1,700

Insurance expense 4,500

Travel (including meals of $1,400) 3,200 Julia purchased and placed in service the following fixed assets for her business. Julia wants to elect immediate expensing under IRC Section 179, if possible.

Furniture and fixtures (new) costing $18,600 on January 12

Computer equipment (new) costing $15,000 on July 28.

Julias itemized deductions include:

State income tax estimated payments made in 2018 $3,200

Home mortgage interest paid to Centier Bank 5,000

Property taxes on home 3,500

Charitable contribution to her alma mater, Saint Leo 1,300

Julia paid sales tax of $437 during 2018. Julia reports interest income of $3,900 on certificates of deposit at Peoples Bank and qualified dividend income of $1,000 from ABC Company, Inc. Julia made Federal estimated tax payments of $5,000 for 2018 (payments of $1,250 were made on April 15, 2018, June 15, 2018, September 15, 2018 and December 15, 2018). THIS RETURN IS FOR 2018 TAX LAWS IN EFFECT FOR 2018 WILL APPLY (THEREFORE, IT DOES REFLECT THE NEW TCJA of 2017)

Compute Julia Williams 2018 Federal income tax payable (or refund due). The tax forms required for your computations are Forms 1040 and 4562 and Schedules A, B C, and SE.

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