Question

Sara earned $2,500 as a life guard over the summer. This was her only job and income taxes were deducted from her paychecks by her employer. For filing a tax return, what should Sara do?

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A) Sara should report this income on her parents tax return since she is still living at home.

B) Sara should file a tax return. Sara is not legally required to file because her income is less than the minimum requirement for filing, but if she does, she can get all of her taxed money refunded.

C) Sara should not file a tax return. Sara is legally not required to file because her income is less than the minimum requirement for filing.

D) Sara should send a check for $50 to the IRS in case the employer didn't take out enough taxes.


H&R BLOCK BUDGET CHALLENGE.


PLEASE HELP.

Answer 1

The correct answer is B. I believe Sara's income is below the threshold legally required for filing taxes. However, because Sara's income is so very low, she would receive a full refund on all of her income taxes. Therefore, it's in Sara's best interest to go ahead and file her taxes so that she can receive a refund.