See attached file and complete the Individual tax Return

Tax Return-Individual Number Three (after Chapter 7) Instructions: Please complete the required federal individual income tax return forms for the following taxpayer. Unless instructed otherwise, the information provided is for the taxpayer's 2012 tax year. Please complete his 2012 tax return. Ignore the requirement to attach the form(s) W-2 to the front page of the Form 1040. If required information is missing, use reasonable assumptions to fill in the gaps. Bob and Melissa 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 Grant's 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 Bob Grant received the following during the year: Employer National Storage Lexington Little League Gross Wages $66,200 $2,710 Federal Income Tax Withholding $8,000 0 State Income Tax Withholding $3,750 0 Federal Income Tax Withholding $2,450 State Income Tax Withholding $1,225 Melissa Grant received the following during the year: Employer Gross Wages Jensen Photography $24,500 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 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 $130 $450 $675 $150 $4,350 1 Disability payments received by Bob on account of injury $3,500 National Storage paid 100% of premiums the premiums on the policy and included the premium payments in Bob's taxable wages Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a car accident: Medical Expenses $2,500 Emotional Distress $12,000 Punitive Damages $10,000 Total $24,500 Eight years ago, Melissa purchased an annuity contract for $88,000. This year, she received her first payment on the annuity. The payment amount was $15,000. The annuity started to pay on January 1 and she received a full first year's payment. It will pay her $15,000 per year for ten years (beginning with this year). The $15,000 payment was reported to Melissa a 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 a grantor or beneficiary of a foreign trust during the tax year. The Grants paid or incurred the following expenses during the year: Dentist/Orthodontist (unreimbursed by insurance) Doctors (unreimbursed by insurance) Prescriptions (unreimbursed by insurance) KY state tax payment made on 4/15/12 for 2011 liability Real property taxes on residence Vehicle property tax 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 $8,500 $ 625 $ 380 $1,350 $1,800 $250 $8,560 $400 $240 $1,000 $2,500 $6,000 $200 In addition, Bob drove 6,750 miles commuting to work and Melissa drove 8,230 miles commuting to work. Both 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. During the year, the Grants' personal residence was burglarized on October 1 of the current year. The theft occurred during the day while both the Grants were at work and their children were at school. The Grants had the following personal property stolen: 2 Item Purchase Date Fair Value on Date of Thef Tax Basis of Item Laptop computer and Printer Rifle TV/Projector 2005 Honda Pilot Total 09/01/2012 3,000 3,000 Insurance Reimbursement Received 500 03/01/2010 03/01/2010 07/01/2011 2,000 5,000 4,000 14,000 2,500 13,000 6,500 25,000 500 1,000 500 2,500 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. 3