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Bob and Melissa Grant are married and live in Lexington




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 987-45-1234Melissa?s Social Security number is 494-37-4883Jared?s Social Security number is 412-32-5690Alese?s Social Security number is 412-32-6940The 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 Withholding;National Storage;$68,200;$8,100;$3,500;Lexington Little League;$3,700;0;0;Melissa Grant received the following during the year;Employer;Gross;Wages;Federal;Income Tax Withholding;State;Income Tax Withholding;Jensen Photography;$23,600;$2,450;$1,225;All 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 $150;Interest Income from City of Lexington, KY Bond $450;Interest Income from U.S. Treasury Bond $700;Interest Income from Nevada State School Board Bond $125;Workers? Compensation payments to Bob $4,350;Disability 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 $2,500Emotional Distress $12,000Punitive Damages $10,000;Total $24,500;Eight 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) $8,500;Doctors (unreimbursed by insurance) $ 625;Prescriptions (unreimbursed by insurance) $ 380;KY state tax payment made on 4/15/13 for 2012 liability $1,350;Real property taxes on residence $1,800;Vehicle property tax based upon age of vehicle $250;Mortgage interest on principal residence $8,560;Interest paid on borrowed money to purchase the City of;Lexington, KY municipal bonds $400;Interest paid on borrowed money to purchase;U.S. Treasury bonds $240;Contribution to the Red Cross $1,000;Contribution to Senator Rick Hartley?s Re-election Campaign $2,500;Contribution to First Baptist Church of Kentucky $6,000;Fee paid to Jones & Company, CPAs for tax preparation $200;In 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;Date;ABC Stock;$5,000;$7,500;6/1/2013;5/1/2012;DEF Stock;$7,000;$10,000;6/1/2013;1/15/2011;GHI Stock;$6,000;$4,000;6/1/2013;11/15/2012;JKL Stock;$5,000;$6,000;6/1/2013;10/31/2011;The 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 Received;Laptop computer and Printer;09/01/2012;3,000;3,000;500;Rifle;03/01/2010;2,000;2,500;500;TV/Projector;03/01/2010;5,000;13,000;1,000;2005 Honda Pilot;07/01/2011;4,000;6,500;500;Total;14,000;25,000;2,500;The 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#41529 | Written in 18-Jul-2015

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