Question
Please dont copy the same answer from another question.These are similar, but different information. Read carefully, please. forms needed: (FORM 1040, SCHEDULE A, SCHEDULE B,
Please dont copy the same answer from another question.These are similar, but different information. Read carefully, please.
forms needed: (FORM 1040, SCHEDULE A, SCHEDULE B, FORM 4952, SCHEDULE 1)
Bob (age 45) and Melissa (age 43) Grant are married and live in Lexington, Kentucky. The Grants have three children: Robert (age 21, college student), Jared (age 16), and Judy (age 10). 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 987-45-1234
- Melissas Social Security number is 494-37-4883
- Robert's Social Security number is 412-32-4690
- Jareds Social Security number is 412-32-5690
- Judy's Social Security number is 412-32-7690
- The Grants mailing address is 95 Hickory Road, Lexington, Kentucky 40502.
- Robert, Jared, and Judy are tax dependents for federal tax purposes.
Bob Grant received the following during the year:
Employer | Gross Wages | Federal Income Tax Withholding | State Income Tax Withholding |
National Storage | $70,000 | $16,000 | $5,000 |
Lexington Little League | $8,000 | 0 | 0 |
Melissa Grant received the following during the year:
Employer | Gross Wages | Federal Income Tax Withholding | State Income Tax Withholding |
Jensen Photography | $35,000 | $7.000 | $3,000 |
All applicable and appropriate payroll taxes were withheld by Grants respective employers.
Melissa has a small photography business. She provided you with the following information for 2022:
Income:
Weddings and Receptions: $30,000 in fees
Photo Restorations: $5,000 in fees
Family Portraits: $5,000 in fees
Expenses:
Photography Supplies: $8,000
Mileage: 500 miles
Office Supplies: $500
Props and Backgrounds: $1,000
Advertising: $700
Camera and Lenses: $6,000
The Grants paid $15,000 to the University of Kentucky for Robert's tuition and fees in 2022.
The Grants sold 500 shares of ExxonMobil stock on July 1, 2022.Below is the information relating to the stock sale:
Purchase Date: January 1, 2010
Purchase Price: $10 per share
Selling Price: $50 per share
Commissions and Fees: $10 per share
The Grants also received the following during this year:
Interest Income from First Kentucky Bank $5,000
Interest Income from City of Lexington, KY Bonds $5,000
Interest Income from U.S. Treasury Bonds $8,000
Interest Income from Nevada State School Board Bonds $2,000
Workers Compensation payments to Bob $7,000
Disability payments received by Bob on account of injury $12,000
- National Storage paid 100% of premiums the premiums on the policy and included the premium payments in Bobs taxable wages
Melissa received the following funds as a result of a lawsuit for damages sustained in a car
accident:
- Medical Expenses $25,000
- Emotional Distress $50,000
- Punitive Damages $75,000
December 12, 2022 was the Grant's lucky day! They won a raffle prize of a new 2023 Ford Mustang convertible valued at $75,000. They paid 10% in Federal income taxes and 5% in state income taxes of the value of the car.
Bob received an inheritance from his favorite uncle, James Robert, in the amount of $250,000 in cash, on November 30, 2022.
The Grant's rent a garage apartment to Robert's best friend, Ricky, for $4,000 a month. The total expenses for the year were $10,000, which consisted of utilities only. In addition, depreciation for the year on the apartment is $5,000.
Bob paid his ex-wife $15,000 in alimony in 2022. They divorced in 2015.
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 $10,000. The annuity started to pay on January 1, and she received a full first years payment. It will pay her $10,000 per year for ten years (beginning with this year). The $10,000 payment was reported to Melissa on form 1099-R for the current year.
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 paid the following expenses during the year:
Dentist/Orthodontist (unreimbursed by insurance) $5.000
Doctors (unreimbursed by insurance) $2,000
Prescriptions (unreimbursed by insurance) $500
KY state tax payment made on 4/15/22 for 2021 tax liability $3,000
Real property taxes on residence $9,000
Vehicle property tax based upon age of vehicle $ 800
Mortgage interest on principal residence $25,000
Interest paid on borrowed money to purchase the City of
Lexington, KY municipal bonds $2,000
Interest paid on borrowed money to purchase
U.S. Treasury bonds $3,000
Contribution to the Red Cross $5,000
Contribution to Senator Rick Taylors Re-election Campaign $2,000
Contribution to First Church of Kentucky $15,000
Fees paid to Jones & Company, CPAs for tax preparation $1,000
In addition, Bob drove 12,000 miles commuting to work and Melissa drove 8,000 miles commuting to work. Both the Grants have represented to you that they maintained careful logs to support their respective mileage.
The Grants drove 500 miles in total to receive medical treatment at hospitals and doctor offices in 2022.
The Grants want to contribute to the Presidential Election Campaign. The Grants 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.
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