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Tax Project: Based on the information provided below, complete a 2020 Form 1040 and any supporting schedules/forms for Bob and Melissa Grant. Attach a cover

Tax Project: Based on the information provided below, complete a 2020 Form 1040 and any supporting schedules/forms for Bob and Melissa Grant. Attach a cover letter summarizing the return, such as refund, tax owed, average and effective tax rates. Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have four children: Robert (age 22, college student), Jared (age 17), Judy (age 12) and Alana (age 8). 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 494-37-4883 Robert's Social Security number is 412-32-4690 Jared's Social Security number is 412-32-5690 Judy's Social Security number is 412-32-7690 Alana's Social Security number is 412-32-8640 The Grants' mailing address is 95 Hickory Road, Lexington, Kentucky 40502. Robert, Jared, Judy and Alana 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 - $18,000 - $5,200 Lexington Little League - $8,500 - 0 - 0 Melissa Grant received the following during the year: Employer - Gross Wages - Federal Income Tax Withholding - State Income Tax Withholding Jensen Photography - $29,000 - $2,500 - $1,200 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 2020: Income: Weddings and Receptions: $10,000 in fees Photo Restorations: $2,000 in fees Family Portraits: $9,000 in fees Expenses: Photography Supplies: $3,000 Mileage: 600 miles Office Supplies: $600 Props and Backgrounds: $500 Advertising: $300 Camera and Lenses: $2,000 The Grants paid $10,000 to the University of Kentucky for Robert's tuition and fees in 2020. The Grants sold 100 shares of ExxonMobil stock on July 1, 2020. Below is the information relating to the stock sale: Purchase Date: January 1, 2010 Purchase Price: $15 per share Selling Price: $55 per share Commissions and Fees: $10 per share The Grants also received the following during this year: Interest Income from First Kentucky Bank$3,000 Interest Income from City of Lexington, KY Bond$2,000 Interest Income from U.S. Treasury Bond$4,000 Interest Income from Nevada State School Board Bond$ 500 Workers' Compensation payments to Bob$6,500 Disability payments received by Bob on account of injury$10,500 National Storage paid 100% of premiums the premiums on the policy and included the premium payments in Bob's taxable wages Melissa received the following as a result of a lawsuit for damages sustained in a car accident: Medical Expenses$ 7,500 Emotional Distress$30,000 Punitive Damages$60,000 December 12, 2020 was the Grant's lucky day! They won a raffle prize of a new 2021 Ford Mustang valued at $50,000. They paid 10% in Federal income taxes ($5,000) and 5% in state income taxes ($2,500) taxes of the value of the car. Bob received an inheritance from his favorite uncle, James Robert, in the amount of $110,000 in cash, on November 30, 2020. The Grant's rent a garage apartment to Robert's best friend, Ricky, for $24,000 a year. The total expenses for the year were $3,000, which consisted of utilities only. In addition, depreciation for the year on the apartment is $2,000. Bob paid his ex-wife $30,000 in alimony in 2020. They divorced in 2013. 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 year's 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 (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)$5.000 Doctors (unreimbursed by insurance)$ 500 Prescriptions (unreimbursed by insurance)$ 600 KY state tax payment made on 4/15/20 for 2019 tax liability$2,500 Real property taxes on residence$6,500 Vehicle property tax based upon age of vehicle$ 450 Mortgage interest on principal residence $18,500 Interest paid on borrowed money to purchase the City of Lexington, KY municipal bonds$ 800 Interest paid on borrowed money to purchase U.S. Treasury bonds $ 500 Contribution to the Red Cross$3,000 Contribution to Senator Rick Taylor's Re-election Campaign$2,500 Contribution to First Baptist Church of Kentucky $15,000 Fees paid to Jones & Company, CPAs for tax preparation $ 2,500 In addition, Bob drove 9,750 miles commuting to work and Melissa drove 7,500 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 2020. 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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