A single taxpayer whose only income is from a sole proprietorship with gross income of $8,700 and net income of $3,800 is not required to file a tax return for 2012.

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Quizplus · Accepted Answer

Any individual whose gross income exceeds the standard deductions plus personal exemption amount (in 2012, $9,750 for a single taxpayer) is required to file a tax return. In this case, the taxpayer's gross income is $8,700, which is below the threshold, but since their net income is $3,800, which is above the threshold, they are required to file a tax return.

A Single Taxpayer Whose Only Income Is from a Sole