2023 Bob and Melissa Grant are married and live in Lexington Kentucky The Grants have two children Jared age

 

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 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                         $2,500

• 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 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 15^th. 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.