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
University of Kentucky	$77,450	$12,000	$2,750

Melissa Grants 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	$29,500	$2,450	$1,600

he 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 $10,000

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	Insurance Reimbursement Received
Laptop computer and Printer	09/01/2014	3,000	3,000	500
Rifle	03/01/2012	12,000	12,500	500
TV/Projector	03/01/2012	5,000	13,000	1,000
2007 Honda Pilot	07/01/2013	4,000	6,500	500
Total		24,000	35,000	2,500