Need to complete the following forms:

• Form 1040: Fill in name/address/SSN, etc. Also, complete the Dependents section, if you determine that Jared and Alese are dependents of their parents. Fill in Lines 1a, 1z, 2a, 2b, 5a, 5b, 8, 9, 11, 12, 14, 15, 16, 18, 19, 21, 22, 23, 24, 25a, 25d, 32, 33, 34, 35a. 
• Schedule 1: Fill in Lines 8i, 9, 10. On-Line 26, enter "0."
• Schedule 2: Enter "0" on line 3. Fill in Lines 8 (note that the taxpayer *is* required to complete form 5329), 21. 
• Schedule A: Fill in Lines 1, 2, 3, 4, 5a, 5b, 5d, 5e, 7. 
• Form 5329: Enter $6,200 on Line 1 and Line 3. Then calculate Line 4. Enter "0" on Line 25.
• Schedule 8812: Fill in Lines 1, 3, 4, 5, 6, 8, 9, 12, 13, 14. Ignore parts II-A, II-B, II-C.
• Use the following information to complete Bob and Melissa Grant's 2022 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gapsBob Grant's Forms W-2 provided the following wages and withholding for the year:

 

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
National Storage	$66,200	$8,000	$3,750
Lexington Little League	$4,710	0	0

 

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

 

Employer	Gross Wages	Federal Income Tax Withholding	State Income Tax Withholding
Jensen Photography	$44,500	$5,450	$2,225

 

All applicable and appropriate payroll taxes were withheld by the Grants' respective employers.  All the Grant family was covered by minimum essential health insurance during each month in 2022.  The insurance was provided by Bob's primary employer, National Storage.

 

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

Workers' compensation payments to Bob                                          $4,350

Disability payments received by Bob due to 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 due to a lawsuit she filed for damages sustained in a car accident:

• Medical Expenses for physical injuries                                 $2,500
• 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, 2022.  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 paid or incurred the following expenses during the year:

Dentist/Orthodontist (unreimbursed by insurance)                                         $ 10,500

Doctor fees (unreimbursed by insurance)                                                       $   2,625

Prescriptions (unreimbursed by insurance)                                                     $   1,380

KY state tax payment made on 4/15/2022 for 2021 tax return liability         $  1,350

Real property taxes on residence                                                                    $   3,800

Mortgage interest on principal residence                                                        $  18,560

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.  The Grants have represented to you that they maintained careful logs to support their respective mileage.

Answer rating: 100% (QA)

Form 1040 Fill in the name address and Social Security Number SSN of Bob and Melissa Grant Complete the Dependents section if Jared and Alese are dependents of their parents Fill in the following line... View the full answer