Comprehensive tax problem

Comprehensivetax problem

Memo

TheGrants have the following incomes which have been considered in theirtax returns:-

Line7 sumof the salaries earned by the couple from their respectiveemployments

Line8a total interests earned from the bank and several bonds

Line14 total receipts by Melissa from her lawsuit

Line16b annuities received by Melissa

Line21 disability payment received by Grant

Line23-25 Gross adjustments on the total income was not done since thenecessary actions that warrant adjustments are not evident in thenotes.

Line46 the total taxes paid by the two to the federal and state organs.

Line47-50 there is no indication of any credits availed to the two andthis was not included.

Line63 this is the tax liability carried forward from 2012.

Itis evident that there were expenses that were incurred in travels andeducation for the 2 dependants but there is no indication of anyexemptions that were claimed. There were some household goods thatwere stolen and there was tax already paid on the goods. It was notclear whether the Grants requested for credits on these goods or not. Therefore, these were not included in the tax returns in form 1040that was filled.

Source

IRS. (n.d.). Internal Revenue Service. Retrieved July 31, 2014, from Internal Revenue service web site: www://irs.gov/pub/irs.pdf/i1040.pdf