Chapter 5 Am I required to File a Tax Return? Rochford, S. (2004). Taxes for teens. South-Western: Cengage Learning.

You Must File! ► 1. Your unearned income was over $750. This includes interest from a savings account (listed on your 1099-INT) and dividends if you own stock (which would be listed on a 1099-DIV). ► 2. Your earned income was over $4,550. (for unmarried people)

► 3. The third instance when you must file requires you to follow directions very carefully.  Step A: Add $250 to your earned income. Then write down the total on a piece of scratch paper. Step B: Compare that answer to $750. The larger of the two amounts is the only one that matters. If your gross income was more than the larger amount in Step A, you must file.

Raul Garcia, 16 ► Earned $1,200 working at the local library and was paid $10 in interest from his bank savings account.  Earned Income _______________  Unearned Income_____________  Gross Income ________________

► Earned Income: $1,200 ► Unearned Income: $10 ► Gross Income: $1,210

Jill Wrong, 18 ► Had two jobs during the past year. She worked as a waitress at La Fogata, where she earned $3,200, and as a summer camp counselor, where she earned $1,400. Jill also made $25 in interest from her savings account.  Earned Income ______________  Unearned Income ____________  Gross Income _______________

► Earned Income: $4,600 ($3,200 + $1,400) ► Unearned Income: $25 ► Gross Income: $4,625