Tax Return-Individual Number Two three (after Chapter 7)-Bob and Melissa Grant
Question # 00041172
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Updated on: 01/10/2015 05:18 AM Due on: 08/29/2015
Tax Return-Individual TNumber Two hree (after Chapter 7)
Instructions:
Please complete the required federal individual income tax return forms for the followingtaxpayer. Unless instructed otherwise, the information provided is for the taxpayer’s 2012 taxyear. Please complete his 2012 tax return. Ignore the requirement to attach the form(s) W-2 tothe front page of the Form 1040. If required information is missing, use reasonable assumptionsto fill in the gaps.
Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have twochildren Jared age 15 and Alese age 12. The Grants would like to file a joint tax return for theyear.
The following information relates to the Grant’s tax year:
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•
•
•
•
•
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
National Storage
Lexington Little
League
Gross Wages
$66,200
$2,710
Federal Income Tax
Withholding
$8,000
0
State Income Tax
Withholding
$3,750
0
Melissa Grant received the following during the year:
Employer
Gross Wages
Jensen Photography
$24,500
Federal Income Tax
Withholding
$2,450
State Income Tax
Withholding
$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
Interest Income from City of Lexington, KY Bond
Interest Income from U.S. Treasury Bond
$130
$450
$675
Interest Income from Nevada State School Board Bond
Workers’ Compensation payments to Bob
$150
$4,350
Disability payments received by Bob on account of injury
$3,500
• National Storage paid 100% of premiums the premiums on the policy andincluded the premium payments in Bob’s taxable wages
Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a caraccident:
• 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. This year, she received herfirst payment on the annuity. The payment amount was $15,000. The annuity started to pay onJanuary 1 and she received a full first year’s payment. It will pay her $15,000 per year for tenyears (beginning with this year). The $15,000 payment was reported to Melissa a form 1099-Rfor 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 orbeneficiary 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 milescommuting to work. Both the Grants have represented to you that they maintained careful logsto support their respective mileage.
The Grants drove 465 miles in total to receive medical treatment at a hospital in April.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 atschool. The Grants had the following personal property stolen:
Item
Purchase Date
Fair Value on
Date of Theft
Tax Basis of
Item
Laptop computer
and Printer
Rifle
TV/Projector
2005 Honda Pilot
Total
09/01/2012
3,000
3,000
Insurance
Reimbursement
Received
500
03/01/2010
03/01/2010
07/01/2011
2,000
5,000
4,000
14,000
2,500
13,000
6,500
25,000
500
1,000
500
2,500
The Grants want to contribute to the Presidential Election Campaign. The Grants would like toreceive a refund (if any) of any tax they may have overpaid for the year. Their preferred methodof receiving the refund is by check.
Instructions:
Please complete the required federal individual income tax return forms for the followingtaxpayer. Unless instructed otherwise, the information provided is for the taxpayer’s 2012 taxyear. Please complete his 2012 tax return. Ignore the requirement to attach the form(s) W-2 tothe front page of the Form 1040. If required information is missing, use reasonable assumptionsto fill in the gaps.
Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have twochildren Jared age 15 and Alese age 12. The Grants would like to file a joint tax return for theyear.
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 494-37-4893
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
National Storage
Lexington Little
League
Gross Wages
$66,200
$2,710
Federal Income Tax
Withholding
$8,000
0
State Income Tax
Withholding
$3,750
0
Melissa Grant received the following during the year:
Employer
Gross Wages
Jensen Photography
$24,500
Federal Income Tax
Withholding
$2,450
State Income Tax
Withholding
$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
Interest Income from City of Lexington, KY Bond
Interest Income from U.S. Treasury Bond
$130
$450
$675
Interest Income from Nevada State School Board Bond
Workers’ Compensation payments to Bob
$150
$4,350
Disability payments received by Bob on account of injury
$3,500
• National Storage paid 100% of premiums the premiums on the policy andincluded the premium payments in Bob’s taxable wages
Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a caraccident:
• 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. This year, she received herfirst payment on the annuity. The payment amount was $15,000. The annuity started to pay onJanuary 1 and she received a full first year’s payment. It will pay her $15,000 per year for tenyears (beginning with this year). The $15,000 payment was reported to Melissa a form 1099-Rfor 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 orbeneficiary 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 milescommuting to work. Both the Grants have represented to you that they maintained careful logsto support their respective mileage.
The Grants drove 465 miles in total to receive medical treatment at a hospital in April.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 atschool. The Grants had the following personal property stolen:
Item
Purchase Date
Fair Value on
Date of Theft
Tax Basis of
Item
Laptop computer
and Printer
Rifle
TV/Projector
2005 Honda Pilot
Total
09/01/2012
3,000
3,000
Insurance
Reimbursement
Received
500
03/01/2010
03/01/2010
07/01/2011
2,000
5,000
4,000
14,000
2,500
13,000
6,500
25,000
500
1,000
500
2,500
The Grants want to contribute to the Presidential Election Campaign. The Grants would like toreceive a refund (if any) of any tax they may have overpaid for the year. Their preferred methodof receiving the refund is by check.
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Rating:
/5
Solution: Tax Return-Individual Number Two three (after Chapter 7)-Bob and Melissa Grant