3 farming). See instructions for other income to report or if you are a minister or member of a religious order Combine lines 1a, 1b, and 2. 2 27,500 3 27,500 4a If line 3 is more than zero, multiply line 3 by 92.35% (0.9235). Otherwise, enter amount from line 3... Note: If line 4a is less than $400 due to Conservation Reserve Program payments on line 1b, see instructions. b If you elect one or both of the optional methods, enter the total of lines 15 and 17 here.. c Combine lines 4a and 4b. If less than $400, stop; you don't owe self-employment tax. Exception: If less than $400 and you had church employee income, enter -0- and continue. 5a Enter your church employee income from Form W-2. See instructions for definition of church employee income . . 4a 25,396 4b 4c 25,396 5a b Multiply line 5a by 92.35% (0.9235). If less than $100, enter -0- . 5b 0 6 Add lines 4c and 5b . . . 6 25,396 7 Maximum amount of combined wages and self-employment earnings subject to social security tax or the 6.2% portion of the 7.65% railroad retirement (tier 1) tax for 2022. . . 7 8a Total social security wages and tips (total of boxes 3 and 7 on Form(s) W-2) and railroad retirement (tier 1) compensation. If $147,000 or more, skip lines 8b through 10, and go to line 11... b Unreported tips subject to social security tax from Form 4137, line 10. © Wages subject to social security tax from Form 8919, line 10. 8a 8b 8c d Add lines 8a, 8b, and 8c . . . 8d 9 Subtract line 8d from line 7. If zero or less, enter -0- here and on line 10 and go to line 11 9 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 Insurance Travel (including restaurant meals of $600) $95,000 16,500 7,900 1,800 5,000 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 Home mortgage interest paid to First National Bank Property taxes on home Charitable contribution to her alma mater, State College $2,950 8,000 2,500 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