years beginning this year. In 2019, they also received $420 of Kentucky state income tax…

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: Dentist/Orthodontist (not paid by insurance) $ 23,000 Medical visits (not paid by insurance) 625 Prescriptions (not paid by insurance) 380 Real property taxes on residence 1,800 Mortgage interest on principal residence 8.560 Contribution to First Baptist Church of Kentucky (Qualified Charity) 7,000 Fee paid to Jones & Company, CPAs for tax preparation 200 In 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. Item Purchase Date Decline in FMV Tax Basis of Insurance Item Reimbursemen t Received Laptop 09/01/2013 3,000 3,000 500 computer and Printer Rifle 03/01/2010 12,000 12,500 500 TV/Projector 03/01/2010 5,000 13,000 1,000 2005 Honda 07/01/2011 4,000 6,500 500 Pilot The Grants do not want to contribute to the Presidential Election Campaign and do not have any virtual currency.
Bob and Melissa Grant are married and live in Lexington, Kentucky. The Grants have 17-year old twin daughters. 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 Jane’s Social Security number is 412-32-5690 Anna’s Social Security number is 412-32-6940 The Grants’ mailing address is 95 Hickory Road, Lexington, Kentucky 40502. Jane and Anna are tax dependents for federal tax purposes Bob Grant received the following during the year: Employer Gross Wages Federal Income Tax State Income Tax Withholding Withholding University of $117,450 $22,000 56,000 Kentucky Melissa Grant received the following during the year: Employer Gross Wages Federal Income Tax State Income Tax Withholding Withholding Jensen Photography $20,500 $2.450 $1.025 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 $580 Interest Income from City of Lexington, KY Bond $600 Interest Income from U.S. Treasury Bond $825 Disability insurance payments received by Bob on account of injury 3,000 Bob’s employer paid for the insurance policy issued by Aflac (NYSE AFL) as part of the tax-free fringe benefits Payment to Melissa as a result of a lawsuit for damages she sustained in a car accident: Reimbursement for her medical Expenses $14,500 Punitive Damages $10,000 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 $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
2019 federal individual income tax return Form 1040, Schedule 1 and Schedule A