Please complete the 2016 federal income tax return for Bob and Melissa Grant. If required information is missing, use reasonable assumptions to fill in the gaps.

Using tax preparation software for assignment. Print all needed forms for the assignment.

Instruction: Please complete the 2016 federal income tax return for Bob and Melissa Grant. If required information is missing, use reasonable assumptions to fill in the gaps. Using tax preparation software to do this assignment. Print all needed forms for the assignment. Bob (D.O.B. = 09/15/1973) and Melissa Grant (D.O.B. = 09/12/1973) are married and live in Lexington, Kentucky. The Grants have two children Jared (D.O.B. = 06/30/2001), and Alese (D.O.B. = 04/07/2005). The Grants would like to file a joint tax return for the year. The following information rates to the Grants' tax year: Bob's Social Security number is 987-45-1234 Melissa's Social Security number is 494-37-4893 Jared's Social Security number is 412-32-5690 Alese's 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. The following page has all of the information that the Grants have collected regarding the preparation of their 2016 income tax return. Please use 2016 personal exemption amount of $4,050 and the appropriate 2016 standard deduction amounts. All applicable and appropriate payroll taxes were withheld by the Grants' respective employers. All of the Grant family was covered by minimum essential health insurance during each month in 2016. The insurance was provided by Bob's primary employer, National Storage. The Grants did not own, control or manage any foreign bank accounts nor were they a grantor or beneficiary of a foreign trust during the tax year. The Grants want to contribute to the Presidential Election Campaign. The Grands would like to receive a refund (if any) of any tax they may have overpaid for the year. Their preferred method of receiving the refund is by check. Amoun t 1 2 3 4 5 Bob Grant's Forms W-2 provided the following wages and withholding for the year: National Storage Gross Wages National Storage Federal Income Tax Withholding National Storage State Income Tax Withholding Lexington Little League Gross wages Lexington Little League Federal Income Tax Withholding Lexington Little League State Income Tax Withholding Melissa Grant's Forms W-2 provided the following wages and withholding for the year: Jensen Photography Gross Wages Jensen Photography Federal Income Tax Withholding Jensen Photography State Income Tax Withholding The Grants also received the following during the year: Interest income from First Kentucky Bank Interest income from City of Lexington, KY Bond Interest income from U.S. Treasury Bond Interest income from Nevada State School Board Bond Workers' compensation payments to Bob Disability payments received by Bob on account of injury (A) Melissa received the following payments as a result of a car accident: Medical Expenses for physical injuries Damages received to compensate for Emotional Distress (from having been physically injured) Punitive Damages Total The Grants paid or incurred the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) Doctor fees (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) KY state tax payment made on 4/15/15 for 2014 tax return liability Real property taxes on residence Vehicle registration fee based upon age of vehicle Mortgage interest on principal residence Interest paid on borrowed money to purchase the City of Lexington, KY municipal bonds Interest paid on borrowed money to purchase U.S. Treasury bonds Contribution to the Red Cross Contribution to Senator Rick Hartley's Re-election Campaign Contribution to First Baptist Church of Kentucky Fee paid to Jones & Company, CPAs for tax preparation Miles driven by Bob for commuting to work Miles driven by Melissa for commuting to work Miles driven by the Grants to receive medical treatment 70,200 9,360 4,388 3,171 316 59 28,665 2,867 1,433 152 527 790 176 5,090 4,095 2,925 14,040 11,700 28,665 12,285 731 445 1,580 2,106 293 10,015 468 281 1,170 2,925 7,020 585 7,898 9,629 544 6 7 8 9 10 11 12 (A ) (B ) The Grants have a condo in Florida that they rent out for the entire year. (B) The revenue and expenses from the rental unit from January through March are as follows: Rental revenue 21,060 Homeowners association fees expense 4,212 Property taxes paid 5,616 Repairs and maintenance expense 3,861 Mortgage interest expense 5,265 Utilities expense 3,510 In addition to her job at Jensen Photography, Melissa performs some free-lance photography services. Revenue : Gross receipts 23,400 Expense: Insurance-professional 936 Equipment leases 1,404 Travel and lodging 2,808 Photography supplies 3,744 Office supplies 410 Legal and professional fees 1,404 Total Expenses 10,706 After-school care payments made to Alese's school. 4,095 Coca-Cola qualified dividends received 468 Student loan interest paid for Bob's Education 351 Unreimbursed travel expense paid by Bob for travel that he incurred for National 1,404 Storage Sales proceeds from sale of Merck Co. stock (Sold 07/01/2016) 5,733 Cost basis of Merck Co. stock (Purchased 07/01/2014) 10,413 National Storage paid 100% of the premiums o the policy and included the premium payments in Bob's taxable wages The Grants do not use this condo. It is rented 100% of the time