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ACC - Bob and Melissa Grant Tax Form Question

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Question;Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have two children Jared age 15 and Alese age 12. The Grants would like to file a joint tax return for the year.The following information relates to the Grant?s tax year:? Bob?s Social Security number is 987-45-1234? Melissa?s Social Security number is 494-37-4883? Jared?s Social Security number is 412-32-5690? Alese?s Social Security number is 412-32-6940? The Grants? mailing address is 95 Hickory Road, Lexington, Kentucky 40502.? Jared and Alese are tax dependents for federal tax purposes.Bob Grant received the following during the year:Employer Gross Wages Federal Income Tax Withholding State Income Tax WithholdingNational Storage $68,200 $8,100 $3,500Lexington Little League $3,700 0 0Melissa Grant received the following during the year:Employer Gross Wages Federal Income Tax Withholding State Income Tax WithholdingJensen Photography $23,600 $2,450 $1,225All applicable and appropriate payroll taxes were withheld by Grants? respective employers.The Grants also received the following during the year:Interest Income from First Kentucky Bank $150Interest Income from City of Lexington, KY Bond $450Interest Income from U.S. Treasury Bond $700Interest Income from Nevada State School Board Bond $125Workers? Compensation payments to Bob $4,350Disability payments received by Bob on account of injury $3,500? National Storage paid 50% of the premiums on the policy and included the premium payments in Bob?s taxable wages. Bob paid the remaining 50% of the premium payments.Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a car accident:? Medical Expenses $2,500? Emotional Distress $12,000? Punitive Damages $10,000Total $24,500Eight years ago, Melissa purchased an annuity contract for $88,000. This year, she received her first payment on the annuity. The payment amount was $15,000. The annuity started to pay on January 1 and she received a full first year?s payment. It will pay her $15,000 per year for ten years (beginning with this year). The $15,000 payment was reported to Melissa a form 1099-R for the current year (box 7 contained an entry of ?7? on the form).The Grants did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year.The Grants paid or incurred the following expenses during the year:Dentist/Orthodontist (unreimbursed by insurance) $8,500Doctors (unreimbursed by insurance) $ 625Prescriptions (unreimbursed by insurance) $ 380KY state tax payment made on 4/15/13 for 2012 liability $1,350Real property taxes on residence $1,800Vehicle property tax based upon age of vehicle $250Mortgage interest on principal residence $8,560Interest paid on borrowed money to purchase the City ofLexington, KY municipal bonds $400Interest paid on borrowed money to purchaseU.S. Treasury bonds $240Contribution to the Red Cross $1,000Contribution to Senator Rick Hartley?s Re-election Campaign $2,500Contribution to First Baptist Church of Kentucky $6,000Fee paid to Jones & Company, CPAs for tax preparation $200In addition, Bob drove 6,750 miles commuting to work and Melissa drove 8,230 miles commuting to work. Both the Grants have represented to you that they maintained careful logs to support their respective mileage.The Grants drove 465 miles in total to receive medical treatment at a hospital in April.The Grants held a yard sale on May 15th. They collected $1,000 from the sale of their personal items. The Grants originally paid $6,000 for the items sold and the fair market value of the items at the date of sale was $1,500.During the year, the Grants sold the following stocks:Stock Sales Price Purchase Price Sales Date Purchase DateABC Stock $5,000 $7,500 6/1/2013 5/1/2012DEF Stock $7,000 $10,000 6/1/2013 1/15/2011GHI Stock $6,000 $4,000 6/1/2013 11/15/2012JKL Stock $5,000 $6,000 6/1/2013 10/31/2011The Grants do not have any capital loss carryforwards from prior years.During the year, the Grants? personal residence was burglarized on October 1 of the current year. The theft occurred during the day while both the Grants were at work and their children were at school. The Grants had the following personal property stolen:Item Purchase Date Fair Value on Date of Theft Tax Basis of Item Insurance Reimbursement ReceivedLaptop computer and Printer 09/01/2012 3,000 3,000 500Rifle 03/01/2010 2,000 2,500 500TV/Projector 03/01/2010 5,000 13,000 1,0002005 Honda Pilot 07/01/2011 4,000 6,500 500Total 14,000 25,000 2,500The Grants want to contribute to the Presidential Election Campaign. The Grants would like to receive a refund (if any) of any tax they may have overpaid for the year. Their preferred method of receiving the refund is by check.

 

Paper#41528 | Written in 18-Jul-2015

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