Your friend Jamaal, a full-time college student,
$15,500 working at the campus bookstore over spring, summer and fall semesters last calendar year. Jamaal knows that you have been learning about taxes in your personal finance class and asks you, “Do I need to file taxes this year? If I do, what is the process like?”
Determine if Jamaal needs to file taxes this year and explain your reasoning.
If you conclude that Jamaal does need to pay taxes, explain what forms she will need, what the deadlines are, and what method you recommend she use to file her taxes.
Based on the information provided, it is likely that Jamaal does need to file taxes this year. If Jamaal earned $15,500 working at the campus bookstore over spring, summer, and fall semesters, the income is considered taxable income and should be reported to the IRS.
In order to determine if Jamaal needs to file taxes, we need to consider her filing status, age, and income level. For the tax year 2021, the standard deduction for single filers under the age of 65 is $12,550. Since Jamaal's income is above this threshold, she will need to file taxes.
Jamaal will need to file a Form 1040 or Form 1040-SR to report her income. The deadline to file taxes for the 2021 tax year is April 18, 2022. Jamaal should gather all the necessary documents, such as her W-2 from the bookstore and any other income documents, before filing her taxes.
There are several methods Jamaal can use to file her taxes, including filing manually by mail, using tax software, or hiring a professional tax preparer. Since Jamaal is a college student and likely has a relatively straightforward tax situation, she may benefit from using tax software like TurboTax or H&R Block to guide her through the filing process. These platforms are user-friendly and can help maximize potential deductions and credits.
It is important for Jamaal to file her taxes on time to avoid any penalties or interest on any taxes owed. It's also a good idea for Jamaal to keep records of her tax documents for at least three years in case she needs to refer back to them in the future.