=1%202.pdf 1 / 3 80% + . 1. Bob (age 43) and Melissa (age 43) 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 Grants tax year: Bob's social security number is 598-94-2583 Melissa's social security number is 301-52-2942 Jared's social security number is 887-44-8710 Alese's social security number is 810-42-9092 The Grants' mailing address is 95 Hickory Road, Lexington, Kentucky 40502 Jared and Alese are tax dependents for federal tax purposes . . 2. Bob Grant's Forms W-2 provided the following wages and withholding for the year Employer Gross Wages Federal Income Tax Withholding $8,000 National Storage $66,200 State Income Tax Withholding $3.750 0 Lexington Little League $4,710 0 Melissa Grant's Form W-2 provided the following wages and withholding for the year: Employer Gross Wages Federal Income Tax Withholding $5,450 State Income Tax Withholding $2,225 Jensen Photography $44,500 The above amounts do not reflect any income items described below. The Grants employer withheld all payroll taxes it was required to withhold. All the Grant family was covered by minimum essential health insurance during each month in 2020. The insurance was provided by Bob's primary employer, National Storage 3. 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 Bob paid 100% of the premiums on the policy 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 . 4. Eight years ago, Melissa purchased an annuity contract for $88,000. She received her first annuity payment on January 1, 2020. 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). 5. The Grants did not own, control or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the tax year 6. The Grants paid or incurred the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) Doctor fees (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) KY state tax payment made on 4/15/20 for 2019 tax return liability KY state income taxes withheld during 2020 Real property taxes on residence Vehicle registration fee based upon value of vehicle Mortgage interest on principal residence (reported on Form 1098 The grants borrowed $420,000 to by their principle residence.) Interest paid on borrowed money to purchase U.S. Treasury bonds Contribution to the Red Cross Contribution to First Baptist Church of Kentucky $ 10,500 $ 2,625 $ 1,380 $ 1,350 $ 5,975 $ 3,800 $ 1,250 $ 18,560 $ 240 $1,000 $ 6,200 7. The Grants drove 465 miles in total to receive medical treatment at a hospitalin April. Transportation cost to medical services may be deductible at actual cost or 170 per mile in 2020 Assignment Complete Federal income tax return for 2020. Assume that The Grants is filing the return on 3 80% Transportation cost to medical services may be deductible at actual cost or 17 per mile in 2020. Assignment Complete Federal income tax return for 2020. Assume that the Grants is filing the return on time (before April 15, 2021). Prepare the return without using the tax return software. In preparing the return, you will need to use form 1040, Schedule 1, and Schedule A. You may ignore any Alternative Minimum Tax (AMT) calculations and should not prepare any AMT- related forms. 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. Upload a copy of your completed tax return for The Grants on Moodle by April 20. Late submission will not be accepted. Project may be prepared individually or in a group. Groups should not consist of more than three students and all members of a group receive the same grade. Upload one copy for each group and specify the name of group members in the uploaded file name