Use the following information to complete Bob and Melissa Grant's 2022 federal income tax return. Bob (age 43) and Melissa (age 43) 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. Please provide the following

1. 2022 Form 1040 - with calculations
2. 2022 Schedules 1, 2, A - with calculations
3. 2022 Form 5329, - with calculations
4. 2022 Schedule 8812 - with calculations

Given:

• Form 1040, Line 5a, pensions and annuities: $15,000, 5b, taxable amount 6,200 (10% penalty for early distribution: Form 5329)
• Form 1040, Line 11, AGI: $132,415
• Form 1040, Line 35a, Amount refunded: $5,361.
• Bob Grant's Forms W-2 provided the following wages and withholding for the year:
  • National Storage
    • Gross Wages -$66,200
    • Federal Income Tax Withholding - $8,000
    • State Income Tax Withholding -$3,750
  • Lexington Little League
    • Gross Wages -$4,710
    • Federal Income Tax Withholding - 0
    • State Income Tax Withholding - 0
• Melissa Grant's Form W-2 provided the following wages and withholding for the year:
  • Jensen Photography
    • Gross Wages - $44,500
    • Federal Income Tax Withholding - $5,450
    • State Income Tax Withholding - $2,225

All applicable and appropriate payroll taxes were withheld by the Grants' respective employers. All the Grant family was covered by minimum essential health insurance during each month in 2022. The insurance was provided by Bob's primary employer, National Storage. The Grants also received the following during the year:

• Interest income from First Kentucky Bank - $130
• Interest income from City of Lexington, KY Bond - $450
• Interest income from U.S. Treasury Bond - $675
• Interest income from Nevada State School Board Bond - $150
• Workers' compensation payments to Bob - $4,350
• Disability payments received by Bob due to injury - $3,500

National Storage paid 100% of the premiums on the policy and included the premium payments in Bob's taxable wages Melissa received the following payments due to a lawsuit she filed for damages sustained in a car accident:

Medical Expenses for physical injuries $2,500 Emotional Distress (from having been physically injured) $12,000 Punitive Damages $10,000

Total $24,500

-Eight years ago, Melissa purchased an annuity contract for $88,000.

-She received her first annuity payment on January 1, 2022.

-The annuity will pay Melissa $15,000 per year for ten years (beginning with this year).

The $15,000 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 grantors or beneficiaries of a foreign trust during the tax year. Also, the Grants did not buy, sell, exchange, or otherwise dispose of any financial interest in any virtual currency.

The Grants paid or incurred the following expenses during the year:

Dentist/Orthodontist (unreimbursed by insurance) $ 10,500 Doctor fees (unreimbursed by insurance) $ 2,625 Prescriptions (unreimbursed by insurance) $ 1,380 KY state tax payment made on 4/15/2022 for 2021 tax return liability $ 1,350 Real property taxes on residence $ 3,800 Vehicle registration taxes based on age of vehicle $ 1,250 Mortgage interest on principal residence $ 18,560 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 $ 1,000 Contribution to Senator Rick Hartley's Re-election Campaign $ 2,500 Contribution to First Baptist Church of Kentucky $ 6,000 Fee paid to Jones & Company, CPAs for tax preparation $ 200

In addition, Bob drove 6,750 miles commuting to work and Melissa drove 8,230 miles commuting to work. 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. The Grants both want to contribute to the Presidential Election Campaign Fund. 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.