Individual Tax Return homework

Instructions:

complete the 2019 federal individual income tax return for Bob and Melissa Grant

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 Grant's tax 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

From the above information answer the following questions related to the 2019 individual tax return.

1.) What is the Tax-exempt interest on Line 2a ____

2.)What is the Taxable interest on Line 2b ___

3).What is the Pensions and annuities (Line 4a) _____

4).What is Pensions and annuities (Line 4b) ______

5).On Schedule 1 Line 1 (What isTaxable refunds) _____

6).How much of the AFLAC income is taxable as part of "Other income" on Line 21 of Schedule 1?

(a) 0

(b) 1000

(c) 2000

(D) 3000

7).On Schedule-1What is Other income amount__________

8).Adjusted Gross Income before Student Loan Interest Deduction _____

9).Schedule 1 Line 33 Student loan interest deduction ____

10)..2019 Form 1040 Line 8b (Adjusted Gross Income)

11).Schedule-A Itemized Deductions Line 4 (Medical and Dental Expenses)

Round-up to the next dollar

12).Schedule A Line 7 (Taxes You Paid)

13).Schedule A Line 10 (Interest You Paid)

14).Schedule A Line 14 (Gifts to Charity)

15).Schedule A, Line 15 Casualty and Theft Losses (All items are considered one event) __

16).Schedule-A Line 16 (Other Itemized Deductions)

17.).2019 Form 1040 Line 9 (Total Itemized Deductions)

18)2019 Form 1040 Line 11b (Taxable income)

19).2019 Form 1040 Line 12a (Income tax liability)

Round-up to the next dollar