What is the general rule for filing taxes for a dependent?

The correct answer is that dependents must file a tax return if their earned income exceeds a certain threshold. For the tax year, the threshold for earned income filing typically aligns with the standard deduction amount available to dependents, which is limited to the greater of $1,150 or the dependent's earned income plus $400 (not exceeding the standard deduction for single filers, which is $12,550 for many years). This means that if a dependent earns income, they need to file if their earned income surpasses these limits because they may owe taxes or could benefit from filing to receive a refund of withholding or credits.

When considering the options, it is essential to understand the definitions of earned vs. unearned income. While unearned income does have its threshold (typically $1,100 for past years), the significant factor is earned income, which can trigger the requirement to file based on the established thresholds that are different from those applied to others who are not dependents. Thus, understanding the specific rules pertaining to dependents is critical for accurate tax preparation and compliance.