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 $987-45-1235$

$$ Melissa$$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:

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 did not own, control or manage any foreign bank accounts nor were they grantors or beneficiaries of a foreign trust during the tax year. Also, the Grants did not buy, sell, exchange, or otherwise dispose of any financial interest in any virtual currency.

$$

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 $ $3,800$

Vehicle registration taxes based on age of vehicle $ $1,250$

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.

The Grants drove $465$ miles in total to receive medical treatment at a hospital in April.

The Grants both want to contribute to the Presidential Election Campaign Fund. 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. $,$

For this tax return, you will need form $1040,$ Schedule $1,$ Schedule A$,$ Schedule B$,$ Schedule $8812,$ Form $4952,$ Supporting Statement for Schedule A$,$ Line $5$ Worksheet $(1040),$ Credit Limit Worksheet A$.$