Please complete the required federal individual income tax return forms for Bob and Melissa Grant for the 2013 tax year. …
Please complete the required 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 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 Grants’ tax year:
• Bob’s Social Security number is 987-45-1234
• Melissa’s Social Security number is 494-37-4893
• 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 Withheld State Income Tax Withheld
National Storage $66,200 $8,000 $3,750
Lexington Little League$ 2,710 $ 0 $ 0
Melissa Grant received the following during the year:
Employer Gross Wages Federal Income Tax Withheld State Income Tax Withheld
Jensen Photography $24,500 $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 $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
Dividends from Target Corporation Common Stock $2,100
Workers’ compensation payments to Bob $4,350
Disability payments received by Bob on account of injury $3,500
• National Storage paid 100% of the premiums on the policy and included the premium payments in Bob’s taxable wages
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 $10,000
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 this year). The $15,000 payment was reported to Melissa on 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) $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
Vehicle registration fee based upon age of vehicle $ 250
Mortgage interest on principal residence $ 8,560
