|result of a lawsuit for damages sustained in a car accident: Total $24,500 Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2013. The annuity will pay Melissa $15,000 per year for ten years (beginning with ts year). The $15,000 payment was reported to Melissa on Form 1099-R|
Instructions: Please complete the federal individual income tax return forms for Bob and Melissa Grant for the 2013 tax year. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Bob (age 43) and Melissa Grant (age 43) are married and live in Lexington, Kentucky. The Grants have two cldren 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 GrantsAc€?c tax year: Bob Grant received the following during the year: National Storage $66,200 $8,000 $3,750 Lexington Little League $2,710 0 0 Melissa Grant received the following during the year: Jensen Photography $24,500 $2,450 $1,225 All applicable and appropriate payroll taxes were withheld by GrantsAc€?c respective employers. The Grants also received the following during the year: Interest income from First Kentucky Bank $130 Interest income from City of Lexington, KY Bond $450 Interest income from U.S. Treasury Bond $675 Interest income from Nevada State School Board Bond $150 WorkersAc€?c compensation payments to Bob $4,350 Disability payments received by Bob on account of injury $3,500 Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a car accident: Total $24,500 Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2013. The annuity will pay Melissa $15,000 per year for ten years (beginning with ts year). The $15,000 payment was reported to Melissa on Form 1099-R for the current year (box 7 contained an entry of Ac€A?7Ac€?? 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) $10,500 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 Vecle registration fee based upon age of vecle $ 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 HartleyAc€?cs 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. 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. During the year, the GrantsAc€?c personal residence was burglarized on October 1. The theft occurred during the day wle both the Grants were at work and their cldren were at school. The Grants had the following personal property stolen: Laptop computer and Printer 09/01/2013 3,000 3,000 500 Rifle 03/01/2011 2,000 2,500 500 TV/Projector 03/01/2011 5,000 13,000 1,000 2006 Honda Pilot 07/01/2012 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.