Case Study On Taxes

Decent Essays
Complete Name: Unit 3 Student Name: Johnson, Tahj

1. Case Study 1: Taxes (p. 153)

2. Given her current situation, list some suggestion on what Shelby should do with a tax refund of $800.

Student Answer: First, I think it’s good that she has a mindset to change her behavior as far as saving for a wardrobe, which alone says that she is maturing. I think she should look into a savings bond considering her future in mind. What if she has kids and fall on hard times, the savings bond would be a really good financial aspect to rely on. EE bonds may be purchased for any amount greater than twenty-five dollars and are sold at half the face value. They can be purchased for set valves ranging from twenty-five to five-thousand dollars (Kapoor, Dlabay, & Hughes, 2014).Shelby also previously calculated that she may need an emergency fund of three to six months of
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With less withholding tax to the government, Shelby will have more take-home pay than usual. Due to Shelby’s current income just enough to pay living expenses, increase in net pay will raise her discretionary income. She can use the extra amount money to pay the debt or save it (Course Hero, 2017). Some other things for Shelby to consider is having an amount from each paycheck deposited in a savings or investment account; always file tax returns on-time; take advantage of all tax credits for which she is qualified; plan purchases with tax implications in mind; search out all possible itemized deductions (Course Hero, 2017). Reference: Course Hero, (2017). Personal Finance. Retrieved from
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