Questionquestion 6 pensions and annuties line 4a question 7 pensions and… question 6 pensions and annuties line 4aquestion 7 pensions and annuties line 4b question 8 Schedule 1 Line 1 (Taxable refunds)queston 9question 10 Schedule-1 Other income __________question 11 Adjusted Gross Income before Student Loan Interest Deduction _____question 12 Schedule 1 Line 33 Student loan interest deductionquestion 13 2019 Form 1040 Line 8b (Adjusted Gross Income)question 14 Schedule-A Itemized Deductions Line 4 (Medical and Dental Expenses)Round-up to the next dollarquestion 15 Schedule A Line 7 (Taxes You Paid)question 16 Schedule A Line 10 (Interest You Paid)question 17 Schedule A Line 14 (Gifts to Charity)question 18. Schedule A, Line 15 Casualty and Theft Losses (All items are considered one event)question 19. Schedule-A Line 16 (Other Itemized Deductions)question 20. 2019 Form 1040 Line 9 (Total Itemized Deductions)question 21 2019 Form 1040 Line 11b (Taxable income)question 22Individual Tax Return ProjectInstructions:Please complete the 2019 federal individual income tax return (Form 1040, Schedule 1 and Schedule A) for Bob and Melissa Grant. Stop after completing 1040 Line 12a for this project. Submit and check your answers on D2L>Quizzes>Individual Tax Return.Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants would like to file a joint tax return for the year. They have 19-year-old twin-daughters who still qualify as their dependents on the tax return.Bob Grant received the following during the year:EmployerGross WagesFederal Income Tax WithholdingState Income Tax WithholdingUniversity of Kentucky$117,450$22,000$6,000Melissa Grant received the following during the year:EmployerGross WagesFederal Income Tax WithholdingState Income Tax WithholdingJensen Photography$20,500$2,450$1,025All 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 $580Interest Income from City of Lexington, KY Bond $600Interest Income from U.S. Treasury Bond $825Disability insurance payments received by Bob on account of injury 3,000Bob’s employer paid for the insurance policy issued by Aflac (NYSE AFL) as part of the tax-free fringe benefitsPayment to Melissa as a result of a lawsuit for damages she sustained in a car accident:Reimbursement for her medical Expenses $14,500Punitive Damages $10,000Eight years ago, Melissa purchased an annuity contract for $80,000. This year, she received her first payment on the annuity. The payment amount was $16,000. The annuity started to pay on January 1 and she received a full first year’s payment. It will pay her $16,000 per year for ten years beginning this year.In 2019, they also received $420 of Kentucky state income tax refund. They took itemized deduction in 2018 and the amount of their total itemized deduction in 2018 is $31,878. The total of their 2018 State and Local Taxes paid is $9,100.The Grants also placed $455 in the Kentucky Derby and won $3,225 from their tickets.The Grants paid or incurred the following expenses during the year:Dental/Orthdontist (not paid by insurance) $ 23,000Medical visits (not paid by insurance) 625Prescriptions (not paid by insurance) 380Real property taxes on residence 1,800Mortgage interest on principal residence 8,560Contribution to First Baptist Church of Kentucky (Qualified Charity) 7,000Fee paid to Jones & Company, CPAs for tax preparation 200In addition, Melissa paid $2,500 of interest on her student loan.During the year, the Grants’ personal belongings were damaged by a federally declared disaster in September of the current year. All the items are considered damaged in one event.ItemPurchase DateDecline in FMVTax Basis of ItemInsurance Reimbursement ReceivedLaptop computer and Printer09/01/20133,0003,000500Rifle03/01/201012,00012,500500TV/Projector03/01/20105,00013,0001,0002005 Honda Pilot07/01/20114,0006,500500The Grants do not want to contribute to the Presidential Election Campaign and do not have any virtual currency.LawSocial ScienceTax law ACC 380
