Question
Need assistance with completing the 2018 individual tax return. Form 1040. And 1040 schedule 1, schedule A, and schedule B Bob (age 43) and Melissa
Need assistance with completing the 2018 individual tax return. Form 1040. And 1040 schedule 1, schedule A, and schedule B
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: Bobs Social Security number is 987-45-1235 Melissas Social Security number is 494-37-4893 Jareds Social Security number is 412-32-5690 Aleses 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 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 $66,200 $8,000 $3,750 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 $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 2018. The insurance was provided by Bobs 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 Bobs 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, 2018. 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. 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 4/15/18 for 2017 tax return liability $ 1,350
KY state income taxes withheld during 2018 $ 5,975
Real property taxes on residence $ 3,800
Vehicle registration fee based upon 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 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 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.
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