Tax Project: Based on the information provided below, complete a 2019 Form 1040 and any supporting schedules/forms for Bob and Melissa Grant. A Kentucky state income tax return is not required. You should complete this tax return manually. You may not use software to assist in preparing the forms. You may find the form instructions helpful in completing this assignment. Please provide a list of assumptions you make, if any. Your project will be graded subject to any reasonable assumptions listed. You do not need to calculate AMT. The 1040 and all supporting documents are to be typed, neat, and professional. One hundred points are assigned to this project. You are to work on this assignment individually. Working on this assignment or discussing it with others is not permitted. Please include your name in the paid preparers box of the 1040. 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 21, college student), Jared (age 17), Judy (age 14) and Alana (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 Alanas 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 $86,200 $18,000 $5,950 Lexington Little League $7,710 0 0 Melissa Grant received the following during the year: Employer Gross Wages Federal Income Tax Withholding State Income Tax Withholding Jensen Photography $29,400 $2,550 $1,025 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 2019: Income: Weddings and Receptions: $12,000 in fees Photo Restorations: $1,500 in fees Family Portraits: $14,000 in fees Expenses: Photography Supplies: $3,000 Mileage: 900 miles Office Supplies: $600 Props and Backgrounds: $900 Advertising: $250 Camera and Lenses: $2,500 The Grants paid $13,000 to the University of Kentucky for Robert's tuition and fees in 2019. The Grants sold 200 shares of ExxonMobil stock on July 1, 2019. Below is the information relating to the stock sale: Purchase Date: January 1, 2010 Purchase Price: $35 per share Selling Price: $65 per share Commissions and Fees: $10 per share The Grants also received the following during this year: Interest Income from First Kentucky Bank $1,930 Interest Income from City of Lexington, KY Bond $2,450 Interest Income from U.S. Treasury Bond $4,675 Interest Income from Nevada State School Board Bond $ 350 Workers Compensation payments to Bob $7,350 Disability payments received by Bob on account of injury $8,500 National Storage paid 100% of premiums the premiums on the policy and included the premium payments in Bobs taxable wages Receipt of payment by Melissa as a result of a lawsuit for damages sustained in a car accident: Medical Expenses $ 7,500 Emotional Distress $32,000 Punitive Damages $70,000 December 12, 2019 was the Grant's lucky day! They won a raffle prize of a new 2020 Ford Mustang valued at $55,000. They paid 10% in Federal 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 $125,000 in cash, on November 30, 2019. The Grant's rent a garage apartment to Robert's best friend, Ricky, for $1,500 a month. The total expenses for the year were $2,800, which consisted of utilities only. In addition, depreciation for the year on the apartment is $3,000. Bob paid his ex-wife $18,000 in alimony in 2019. Eight years ago, Melissa purchased an annuity contract for $90,000. 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 (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) $8,500 Doctors (unreimbursed by insurance) $ 625 Prescriptions (unreimbursed by insurance) $ 380 KY state tax payment made on 4/15/19 for 2018 tax liability $1,350 Real property taxes on residence $8,800 Vehicle property tax based upon age of vehicle $ 450 Mortgage interest on principal residence $19,560 Interest paid on borrowed money to purchase the City of Lexington, KY municipal bonds $ 400 Interest paid on borrowed money to purchase U.S. Treasury bonds $ 240 Contribution to the Red Cross $4,000 Contribution to Senator Rick Taylors Re-election Campaign $2,500 Contribution to First Baptist Church of Kentucky $16,000 Fees paid to Jones & Company, CPAs for tax preparation $ 1,400 In addition, Bob drove 10,750 miles commuting to work and Melissa drove 7,530 miles commuting to work. Both the Grants have represented to you that they maintained careful logs to support their respective mileage. The Grants drove 915 miles in total to receive medical treatment at hospitals and doctor offices in 2019. 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. I need help filling out the appropriate tax forms for this return. Thank you. Schedules 1, A,B,C,D,E and 1040