Dante worked 10 hours per week at a grocery store last school year, earning minimum wage. His parents claim him as a dependent on their taxes, and he realizes he doesn't legally have to file a federal tax return for the year. Why might he want to do so anyway?

Assuming that Dante earned $72.50 per week x 50 weeks = $3,625 total yearly income. Maybe his employer deducted $500 as federal income tax withholding during the year. The only way that Dante can recover the $500 withheld is to file taxes and request a refund. Since he earns a very low salary, Dante doesn't need to pay income taxes.

Answer Link

chilljain33 chilljain33 · Answer 2 · 2021-12-18T08:04:57+01:00

The minimum wage rate is 72.50 dollars per week of labor given. and the schools are open for say 10 months. Assuming the above calculations Dante has earned approximately 3200 dollars during the last school year.

To escape from paying unnecessary taxes as his income rate is still low, he wants to claim the refund that his employer must have deducted which can range from 500 dollars in total.

Dante's parents have claimed to be dependent on them for saving his taxes as his income slab is low and the taxes eat up a big chunk of his salary. It will not increase the liability of his parents taxation by a big margin.

Dante also might have plans to study further and the refund thus claimed will be useful in paying the school fees and will sponsor his education and his expenses on his own.

Further, if Dante files his returns for this year under no tax liabilities he will have an option to smartly claim an amount in the coming years and will save taxes from both the years.

Hence, Dante's parents claimed him to be dependent on them for smart tax saving purposes.

To know more about taxation, kindly refer the below link.

https://brainly.com/question/1687138