Question

Dave is a salaried employee who works in a gas station. He only earns from his job and has no other source of income. He gets a big tax refund at the end of the year but is always struggling to cover his monthly expenses. In what way can Dave address his problem?
A.
maintain withholding to maintain his monthly income after taxes
B.
increase withholding to decrease his monthly income after taxes
C.
reduce withholding to increase his monthly income after taxes
D.
reduce his expenses to increase his monthly income after taxes
E.
increase his sources of income to show a rise in his income after taxes

Answer 1

Answer:

In my opinion the most suitable answer is E. increase his sources of income to show a rise in his income after taxes

Explanation:

The reason is he could lower his expenses too, but for how long? Inflation is going to eat his salary away anyway possibly in 5 to 10 years so what Daventry ustock do is to create another source of income so that he is safe. Possibly through investing in income generating assets, real estate and possibly a side hustle! (A small time business)