Question
SCENARIO #7 #7: TORI Tori is 20 years old, a junior in college, and lives with her parents. She has a graphic design side gig and her net earnings were 2,150 Questions: 1. Can this person be claimed as a dependent? 2. Is this person legally required to file a tax return? Why or why not? 3. If no, should they file a tax return? Explain your reasoning.
Answer
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Iona
Professional · Tutor for 6 years
Answer
1. Yes, Tori can be claimed as a dependent if she meets the criteria for a qualifying child or a qualifying relative as per IRS guidelines. This includes factors such as age, relationship to the taxpayer, residency, and financial support.2. Tori may not be legally required to file a tax return if her earned income is below the minimum threshold for her filing status and if she meets certain criteria such as not being claimed as a dependent by another taxpayer. However, she may still choose to file a tax return to claim any tax credits or deductions she may be eligible for.3. Even if Tori is not legally required to file a tax return, it may be beneficial for her to do so. Filing a tax return could allow her to claim any tax credits or deductions she qualifies for, such as the Earned Income Tax Credit or educational tax credits. Additionally, filing a tax return creates a record of her income, which may be useful for future financial transactions or applications. Therefore, filing a tax return could be advantageous for Tori despite not being legally required to do so.