Question
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
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 16 (first line item on the second page of Form 1040) for this project.
Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants would like to file a joint tax return for the year. They have 19-year-old twin-daughters who still qualify as their dependents on the tax return.
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: $6,0000
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
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.
The Grants do not want to contribute to the Presidential Election Campaign and do not have any virtual currency.
Using the information above PLEASE Complete the 2021 Schedule 1 down below some answers have been filled out and are correct. Please fill out lines 1-10. Please keep read everything as i have asked previously and gotten incorrect answers. Please and Thank You!!
\begin{tabular}{|c|c|c|c|c|} \hline Item & Purchase Date & Decline in FMV & Tax Basis of Item & InsuranceReimbursementReceived \\ \hline LaptopcomputerandPrinter & 09/01/2013 & 3,000 & 3,000 & 500 \\ \hline Rifle & 03/01/2010 & 12,000 & 12,500 & 500 \\ \hline TV/Projector & 03/01/2019 & 5,000 & 13,000 & 1,000 \\ \hline 2010 Honda Pilot & 07/01/2016 & 4,000 & 6,500 & 500 \\ \hline \end{tabular} Part I Additional Income 1 Taxable refunds, credits, or offsets of state and local income taxes 2a Alimony received. b Date of original divorce or separation agreement (see instructions) 3 Business income or (loss). Attach Schedule C 4 Other gains or (losses). Attach Form 4797 5 Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E 6 Farm income or (loss). Attach Schedule F 7 Unemployment compensation . 8 Other income: a Net operating loss b Gambling income c Cancellation of debt . d Foreign earned income exclusion from Form 2555 e Taxable Health Savings Account distribution f Alaska Permanent Fund dividends g Jury duty pay h Prizes and awards i Activity not engaged in for profit income j Stock options k Income from the rental of personal property if you engaged in the rental for profit but were not in the business of renting such property I Olympic and Paralympic medals and USOC prize money (see instructions) m Section 951(a) inclusion (see instructions) n Section 951A(a) inclusion (see instructions) - Section 461() excess business loss adjustment p Taxable distributions from an ABLE account (see instructions) . z Other income. List type and amount 9 Total other income. Add lines 8a through 8z 10 Combine lines 1 through 7 and 9. Enter here and on Form 1040, 1040-SR, or 1040-NR, line 8 For Paperwork Reduction Act Notice, see your tax retum instructions. Sehedule 1 (Form 1040, 2021Step by Step Solution
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