*Attatched are pictures of the assignment* Bob (age 43) and Melissa Grant (age 43) are married and live in Lexington, Kentucky. The Grants have two children Jane, age 17, and Anna, age 17. The Grants would like to file a joint tax return for the year. Bobs Social Security number is 987-64-6452 Melissas Social Security number is 494-37-4893 Janes Social Security number is 412-32-5690 Annas Social Security number is 412-32-6940 The Grants mailing address is 95 Hickory Road, Lexington, Kentucky 40502. Jane and Anna are tax dependents for federal tax purposes Bob Grants Forms W-2 provided the following wages and withholding for the year: Employer Gross Wages, Federal Income Tax Withholding, State Income Tax Withholding $77,450 $12,000 $2,750 respectively. Melissa Grants Form W-2 provided the following wages and withholding for the year: Employer Gross Wages, Federal Income Tax Withholding, and State Income Tax Withholding $29,500 $2,450 $1,600 respectively. the Grants also received the following during the year: *Interest income from First Kentucky Bank $580 *Interest income from City of Lexington, KY Bond $450 *Interest income from U.S. Treasury Bond $825 *Interest income from Nevada State School Board Bond $150 *Disability payments received by Bob on account of injury $3,500 Bob's employer paid for the insurance policy issued by Aflac (NYSE AFL) as part of the tax-free fringe benefits 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 $2,500 Emotional Distress (from having been physically injured) $12,000 Punitive Damages $10,000Instructions: Please complete the federal individual income tax return forms for the following taxpayer. Unless instructed otherwise, the information provided is for the taxpayers 2014 tax year. Please complete his 2014 tax return. 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. Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have 17-year old twin daughters. The Grants would like to file a joint tax return for the year The following information relates to the Grants tax year Bobs Social Security number is 987-45-1234 Melissas Social Security number is 494-37-4893 . Janes Social Security number is 412-32-5690 . Annas Social Security number is 412-32-6940 The Grants mailing address is 95 Hickory Road, Lexington, Kentucky 40502. . Jane and Anna are tax dependents for federal tax purposes Bob Grant received the following during the year: Federal Income Tax Withholding $12,000 State Income Tax Withholding $2,750 Employer Gross Wages University of Kentucky $77,450 Melissa Grant received the following during the year: Federal Income Tax Withholding $2,450 State Income Tax Withholding $1,600 Employer Gross Wages Jensen Photography $29,500 employers. All applicable and appropriate payroll taxes were withheld by Grants respective 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 Interest Income from Nevada State School Board Bond $580 $450 $825 $150 Total $24,500 Eight years ago, Melissa purchased an annuity contract for $80,000. This year, she received her first payment on the annuity. The payment amount was $16,000. The annuity started to pay on January 1 and she received a full year's payment. It will pay her $16,000 per year for ten years (beginning with this year). The Grants paid or incurred the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) $13,000 Doctor fees (unreimbursed by insurance) $625 Prescriptions (unreimbursed by insurance) $380 Real property taxes on residence $1,800 Mortgage interest on principal residence $ 8,560 Contribution to the Red Cross $ 1,000 Contribution to Senator Rick Hartleys 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 paid $1,000 to Bank of America for the interest on his student loan. 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: Item Purchase Date, Fair Value on Date of Theft, Tax Basis of Item, and Insurance Reimbursement Received

Laptop computer and Printer 09/01/2014 3,000(fair value on date of theft) 3,000(Tax basis of item) 500(insurance reimbursment recieved)

Rifle 03/01/2012 12,000 12,500 500

TV/Projector 03/01/2012 5,000 13,000 1,000

Honda Pilot 07/01/2013 4,000 6,500 500

Total 24,000 35,000 2,500