Unearned Income

• Unearned income is money you received that wasn't given by an employer or a client. If you are being claimed as a dependent on someone else's taxes, but have received a certain amount of unearned income from any source, you must still file a tax return. The minimum amount of unearned income you can receive without being taxed changes is based on your age, marital status and whether you're blind.
  
  

Filing Requirements

• Anyone who makes more than $950 in unearned income must file a tax return, as long as they aren't over 65 or blind. A married person who is either blind or over 65 must file when their unearned income reaches $2,050. An unmarried person who is either blind or over 65 must file taxes when their unearned income reaches $2,350. A married person who is both over 65 and blind must file when their unearned income reaches $3,150. An unmarried person who is both over 65 and blind must file when their unearned income reaches $3,750. Failure to file a return when you make more than the minimum amount of unearned income can lead to an audit or other penalties.
  
  

Types of Unearned Income

• The IRS considers several types of income as unearned. If you rent out property, that income is considered unearned income. Money received from investments or savings accounts is also unearned. Passive income from certain types of businesses, like S corporations and trusts, is unearned income. If you have debt that is cancelled, it is considered unearned income. Gambling winnings, lottery winnings and any type of competition winnings is unearned income. Certain monies earned in foreign countries may also be considered unearned income.
  
  

Earned and Unearned Income

• Your total tax debt is determined by both your earned and unearned income. At the time of publication, a person making $5,700 in earned income must file a tax return. If your total income -- from both earned and unearned sources -- equals $5,700, you must file, even if your unearned income is less than $950. For example, if you are 25, single and not blind and have $500 in unearned income but $5,500 in earned income, you must still file a tax return.