Registered Tax Return Preparer RTRP Practice Exam

The correct answer focuses on the threshold of $950 regarding unearned income for dependents. To clarify, if a dependent's unearned income exceeds $950, they are generally required to file a tax return. This rule reflects the IRS guideline, which sets specific income thresholds that can trigger filing requirements for dependents, particularly concerning unearned income, such as interest, dividends, or capital gains.

Under this requirement, dependents with unearned income up to $950 do not need to file because it falls below the minimum threshold. However, once that income exceeds $950, the dependent is obligated to file a return to report that income. Thus, understanding this threshold is crucial for complying with tax regulations regarding dependents.

The other options highlight either the income being less than, exactly at, or mentioning no impact related to filing requirements, which do not accurately capture the essence of the IRS guidelines regarding dependent filing requirements. The focal point is that exceeding the $950 threshold indeed requires filing, while amounts below that do not.