Do I need to file tax for investment income if it is my only source of income? If i am a single dependent?

Can anyone please tell me:

I am a single dependent student.
Investment income are my only income.
I plan to have around 1000 USD in scottrade account. Just to pratice trading.
Will i need to file taxes? I do not my income to be high.
Is there a certain limit or amount?
THank you

You will need to pay taxes on any returns you make from your investment. For example, if you invest $1000 and make a 10% return ($100 for a total of $1100 in your account), you need to pay capital gains tax on the $100.

Here's the good news.. if your return is less than $400 and you have no other income, you fall below the filing requirement for 2007 (probably will be the same in 2008) and do not need to file a tax return.

If you are a dependent and have income only from investments, then you are required to file a tax return when your income is $850 or more.

Only the earnings from your $1,000 would be counted toward the $850.

However, if you have stock trades, the IRS would need a return from you to see that your income is in fact low enough not to trigger taxes. This is because if you sell a stock, only the sales price is reported to the IRS, not the buy price. With no other notice, the IRS will assume the buy price was zero.

So keep track of your trades and report them on Schedule D.

That would depend on the total amount of your investment income. If you make any trades during the year, you are wise to file and show the gains and losses, otherwise you can end up mired in IRS paperwork. Unless you are VERY good at trading and/or get VERY lucky, you aren't likely to owe income tax on it though.