Please complete the 2021 federal individual income tax return (Form 1040, Schedule 1 and Schedule A) for Bob and Melissa Grant. Stop after completing 1040 Line 12a for this project.

Submit and check your answers on D2L>Quizzes>Individual Tax Return. Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have 19-year old twin daughters. The Grants would like to file a joint tax return for the year.

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

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 Bobs 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 years payment. It will pay her $16,000 per year for ten years beginning this year. In 2021, they also received $420 of Kentucky state income tax refund. They took itemized deduction in 2020 and the amount of their total itemized deduction in 2020 is $31,878. The total of their 2020 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: Dental/Orthdontist (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.

(PD: Purchase Date, DFMV: Decline in Fair Market Value, TBI: Tax Basis of Item, IRR: Insurance Reimbursement Received)

Laptop computer and Printer : PD: 09/01/2013: DFMV: 3,000; TBI 3,000; IRR 500

Rifle 03/01/2010 12,000 12,500 500

TV/Projector: 03/01/2019 5,000 13,000 1,000

2010 Honda Pilot 07/01/2016 4,000. 6,500 500

The Grants do not want to contribute to the Presidential Election Campaign and do not have any virtual currency.

Question 13

Schedule 1 Line 21 Student loan interest deduction ____. This number also applies to Form 1040, Line 10.

Question 14

2021 Form 1040 Line 11 (Adjusted Gross Income)

Question 15

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

(Keep two decimals when calculating 7.5% of AGI

Round-up to the next dollar for Line 4)

Question 18

Schedule A Line 14 (Gifts to Charity)

Question 19

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