Assignment:
Life Situation Single Age 21 No dependents College student Financial Data Monthly Income $1,750 Living Expenses $1,210 Personal property $7,300 Savings $2,000 Student loan $3,000 Credit card debt $2,400 Shelby Johnson has been working at a local pet store in the grooming department. She has just received her W-2 statement from her employer so that she can prepare her taxes. Her tax withheld from her paycheck is normally greater than the tax owed as calculated on her tax return. In the past, she has used her tax refund to build up her wardrobe with a shopping spree. However, as she gets closer to graduating she is reconsidering this behavior and needs help deciding on a better alternative.
Questions
1.Given her current situation, list some suggestions on what Shelby should do with a tax refund of $800.
2.Based on her current and future life situation, what tax planning strategies should she consider.