For each item of income listed below please document if the item should be recognized in income or not and why. (please do this in order presented below and on a word document)

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
National Storage	$68,800	$9,000	$3,950
Lexington Little League	$4,710	0	0

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	$46,500	$5,600	$2,850

All applicable and appropriate payroll taxes were withheld by the Grants respective employers. All the Grant family was covered by health insurance that was provided by Bobs primary employer, National Storage. The family did not make any contributions.

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 Bond $150

Workers compensation payments to Bob $4,350

Gambling winnings from Oxford Casino for Melissa winning at the slots $2,300

Short Term Disability payments received by Bob due to injury $3,500

Bob purchased and paid for premiums on the insurance policy himself.

Melissa received the following payments due to a lawsuit she filed for damages sustained in a car accident:

Medical Expenses for physical injuries $20,500

Emotional Distress (from having been physically injured) $60,000

Punitive Damages $10,000

Total $90,500

Eight years ago, Melissa purchased an annuity contract for $100,000. She received her first annuity payment on January 1, 2023

. The annuity will pay Melissa $20,000 per year for fifteen years (beginning with this year). Report as Pensions & Annuities.

During 2023, they received a refund of Kentucky taxes paid in 2022. The refund was $700 and they claimed the standard deduction in 2022.