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 Grant's tax year: Bob's Social Security number is 987-45-1234 Melissa's Social Security number is 494-37-4893 Jane's Social Security number is 412-32-5690 Anna's 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: Employer: University of Kentucky Gross Wages: $117,450 Federal Income Tax Withholding: $22,000 State Income Tax Withholding: $6,000 Melissa Grant received the following during the year: Employer: Jensen Photography Gross Wages: $20,500 Federal Income Tax Withholding: $2,450 State Income Tax Withholding: $1,025 All applicable and appropriate payroll taxes were withheld by Grants' respective employers. The Grants also received the following during the year: Interest Income from First Kentucky Bank $580 Interest Income from City of Lexington, KY Bond $600 Interest Income from U.S. Treasury Bond $825 Disability insurance payments received by Bob on account of injury 3,000 Bob's employer paid for the insurance policy issued by Aflac (NYSE AFL) as part of the tax-free fringe benefits Payment to Melissa as a result of a lawsuit for damages she sustained in a car accident: Reimbursement for her medical Expenses $14,500 Punitive Damages $10,000 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 first year's payment. It will pay her $16,000 per year for ten years beginning this year. In 2019, they also received $420 of Kentucky state income tax refund. They took itemized deduction in 2018 and the amount of their total itemized deduction in 2018 is $31,878. The total of their 2018 State and Local Taxes paid is $9,100. The Grants also placed $455 in the Kentucky Derby and won $3,225 from their tickets. The Grants paid or incurred the following expenses during the year: Dentist/Orthodontist (not paid by insurance) $ 23,000 Medical visits (not paid by insurance) 625 Prescriptions (not paid by insurance) 380 Real property taxes on residence 1,800 Mortgage interest on principal residence 8,560 Contribution to First Baptist Church of Kentucky (Qualified Charity) 7,000 Fee paid to Jones & Company, CPAs for tax preparation 200 In addition, Melissa paid $2,500 of interest on her student loan. During the year, the Grants' personal belongings were damaged by a federally declared disaster in September of the current year. All the items are considered damaged in one event. Item: Laptop computer and Printer Purchase Date: 09/01/2013 Decline in FMV: 3,000 Tax Basis of Item: 3,000 Insurance Reimbursement Received: 500 Item: Rifle Purchase Date: 03/01/2010 Decline in FMV: 12,000 Tax Basis of Item: 12,500 Insurance Reimbursement Received: 500 Item: TV/Projector Purchase Date: 03/01/2010 Decline in FMV: 5,000 Tax Basis of Item: 13,000 Insurance Reimbursement Received: 1,000 Item: 2005 Honda Pilot Purchase Date: 07/01/2011 Decline in FMV: 4,000 Tax Basis of Item: 6,500 Insurance Reimbursement Received: 500 The Grants do not want to contribute to the Presidential Election Campaign and do not have any virtual currency. Please answer the following questions based on the information provided above. Question 1 The filing status of the taxpayer is? Question 2 The number of dependents on the tax return is? Question 3 Form 1040 Line 1 ___ Question 4 Tax-exempt interest on Line 2a ____ Question 5 Taxable interest on Line 2b ___ Question 6 Pensions and annuities (Line 4a) _____ Question 7 Pensions and annuities (Line 4b) ______ Question 8 Schedule 1 Line 1 (Taxable refunds) _____ Question 9 How much of the AFLAC income is taxable as part of "Other income" on Line 21 Line 8 of Schedule 1? Question 10 Schedule-1 Other income __________ Question 11 Adjusted Gross Income before Student Loan Interest Deduction _____ Question 12 Schedule 1 Line 33 Student loan interest deduction ____ Question 13 2019 Form 1040 Line 8b (Adjusted Gross Income) Question 14 Schedule-A Itemized Deductions Line 4 (Medical and Dental Expenses) Round-up to the next dollar Question 15 Schedule A Line 7 (Taxes You Paid) Question 16 Schedule A Line 10 (Interest You Paid) Question 17 Schedule A Line 14 (Gifts to Charity) Question 18 Schedule A, Line 15 Casualty and Theft Losses (All items are considered one event) Question 19 Schedule-A Line 16 (Other Itemized Deductions) Question 20 2019 Form 1040 Line 9 (Total Itemized Deductions) Question 21 2019 Form 1040 Line 11b (Taxable income) Question 22 2019 Form 1040 Line 12a (Income tax liability) Round-up to the next dollar