2. Andrew did not work last year but won a cash prize at a carnival of 2,500 Does he need to file a tax return? Why or why not?

Yes, Andrew needs to file a tax return. Winning a cash prize, such as the $2,500 from the carnival, is considered taxable income, and individuals are required to report all income, including prizes, to the tax authorities. Although Andrew didn't work, the prize money is still subject to taxation.