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.
Bob's Social Security number is 987-64-6452
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's Forms W-2 provided the following wages and withholding for the year:

Melissa Grant's Form W-2 provided the following wages and withholding for the year:

The Grants also received the following during the year:
*Interest income from First Kentucky Bank........................................$130
*Interest income from City of Lexington, KY Bond..............................$650
*Interest income from U.S. Treasury Bond..........................................$675
*Interest income from Nevada State School Board Bond........................$150
*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
Melissa received the following payments as a result of a lawsuit she filed for damages sustained in a car accident:
Medical Expenses for physical injuries........................................$3,500
Emotional Distress (from having been physically injured)................$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, 2014. 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
Doctor fees (unreimbursed by insurance) .............................................$825
Prescriptions (unreimbursed by insurance) ...........................................$380
KY state tax payment made on 4/15/14 for 2013 tax return liability............$1,350
Real property taxes on residence......................................................$1,600
Vehicle registration fee 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.....................................................................$240
Contribution to the Red Cros........................................................$ 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. 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' personal residence was burglarized on October 1. 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-use property stolen:

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Gross Wages Federal Income Tax Withholding State Income Tax Employer Withholding National Storage $67,200 $8,500 $3,850 Lexington Little League $2,710 Federal Income Tax State Income Tax Employer Gross Wages Withholding Withholding Jensen Photography $24,500 $2,450 $1,225