What type of income requires an unmarried dependent to file a tax return with income over $950?

An unmarried dependent is required to file a tax return if their unearned income exceeds $950. Unearned income typically includes items such as interest, dividends, and capital gains, which are not derived from employment or services rendered. The threshold of $950 is significant because it represents the point at which the IRS requires dependents to report their income. If their unearned income surpasses this amount, filing is mandated to ensure that appropriate taxes are assessed.

While wage income, investment income, and passive income could potentially require filing under different conditions, unearned income is specifically tied to the $950 threshold for unmarried dependents. This distinction highlights the importance of understanding the different types of income and the specific limits that trigger filing obligations for tax purposes.