Short Answer 
A tax return is a formal report submitted to tax authorities detailing income, expenses, and tax obligations. Certain individuals, depending on their income and filing status, are required to file, with specific thresholds for single individuals, married couples, and heads of household. Analyzing individual circumstances, like those of Greg and Erin, highlights the importance of understanding whether one must file a tax return.
Step 1: Understand What a Tax Return Is
A tax return is a formal report that taxpayers submit to the tax authorities, summarizing their income, expenses, and overall tax situation. It allows individuals to calculate their tax liability and determine whether they owe taxes or are eligible for a refund. Filing a tax return is an essential part of fulfilling one’s responsibilities as a taxpayer.
Step 2: Identify Who Must File a Tax Return
Certain individuals are legally obligated to file a tax return based on their income and filing status. The requirements can vary significantly, and knowing the thresholds is crucial. Key categories include:
- Single individuals under 65 must file if income exceeds $12,550.
- Married couples filing jointly must file if both are under 65 and income exceeds $25,100.
- Head of household under 65 must file if income exceeds $18,800.
Step 3: Analyze Specific Cases
Consider the cases of Greg and Erin to understand the requirements better. Greg can be claimed as a dependent and earned $12,650, which is above the threshold for dependents, indicating he must file. Erin, who cannot be claimed as a dependent and earned $14,000, also meets the filing requirement. Each scenario illustrates why understanding personal circumstances is key when determining the need to file a tax return.