Question

1. why might someone file a tax return, even if they arent legally required to?

someone might file a tax return even if they dont have to so they can get a refund of any taxes taken out of their paycheck.

1. max is a high school student who works a part-time seasonal job at an ice cream store. he is a dependent and expects to earn below the income threshold requiring him to file taxes. he tells you \i just filled in exempt on my w-4, so i dont have to pay any taxes or file a tax return.\ is max correct? describe how filling in exempt will impact maxs tax situation. max is correct, because even if he writes exempt, taxes might still to prove he earned below the limit

Explanation:

Max is incorrect. Claiming "exempt" on a W-4 means no federal income tax is withheld from his paychecks. Since he earns below the filing threshold, he does not need to file a tax return, but there is no need to file to prove his income is below the limit. The key impact is no tax withholding, so there will be no refund to claim either, and he remains not required to file.

Answer:

Max is not correct. Filling in 'exempt' on his W-4 will result in no federal income tax being withheld from his part-time paychecks. Since he earns below the income threshold for filing taxes as a dependent, he still does not need to file a tax return, and there is no requirement to file to prove his income is below the limit. He will not have any withheld taxes to claim as a refund, and his non-filing status remains valid.