For an unmarried dependent with $1,000 of unearned income, is filing required?

For an unmarried dependent, filing requirements are determined by the amount of unearned income they receive. In this case, the threshold for filing is significant. When a dependent has unearned income—such as interest, dividends, or rental income—if that income exceeds $950 for the tax year, the dependent is required to file a tax return. Since the individual in question has unearned income of $1,000, which is above the threshold of $950, filing a tax return is necessary.

This rule exists to ensure that any unearned income that exceeds the designated amount is properly reported to the IRS, as this income is subject to taxation. In circumstances where unearned income is less than or equal to $950, generally, no return is required. However, since the individual has $1,000 in unearned income, meeting the requirement dictates that filing is essential to comply with tax laws.