Filing Requirements
Response to the following problem:
For each of the following situations, determine whether the taxpayer must file a tax return for 2014. Provide a full explanation for your answer, including which threshold was used in making your determination.
a. Andy, age 17, is claimed as a dependent on his parents' tax return. He earned $3,190 from his paper route and other after-school jobs. Andy deposits most of his earnings in a savings account at the local bank. His interest income was $400.
b. Marla, age 25, is claimed as a dependent on her parents' tax return. She received a $5,000 tax-free academic scholarship during the year. Marla had interest income of $125 and $415 of net earnings from self-employment.
c. Todd, age 22 and single, graduated from college last year. He has not been able to find a full-time job. Todd had wages from a part-time job of $5,000 and no other income. Although he used some of his earned income for support items, the majority of Todd's support came from his parents.