Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
They still make up less than 1% of the total number of income tax filers who pay no tax at all,
Yes, so a few (Less than 1%) who, for odd reasons don't... mean what?
Quote:
those who make less than $25,000 a year — account for the largest number of those not paying any federal income tax: 76% as of 2009.
Quote:
As of 2009, more than 20,000 filers making more than $200,000 a year — 1,470 of whom had adjusted gross income of more than $1 million — owed no income tax, a Detroit Free Press analysis showed.
Interesting choice of words... I wonder if they didn't OWE... because they had paid it all during the year, or what...
Well, the article says:
Quote:
A Free Press analysis of IRS data shows that, in 1996, people with incomes of less than $30,000 made up 99.5% of all the nontaxable returns
WHat does focusing on one half of one percent mean????
If you take away the child tax deductions and credits on those returns, they those filers would owe and have to pay federal taxes.
The federal government subsizes through child tax deductions and credits, people that have children. Right or wrong, it's that simple. Any tax return with at least one working parent that does not require a person to pay income taxes is almost always the result of factoring in the deductions and credits related to having children (including the amount deductible for daycare).
I do not have kids (my vasectomy roxx) but I have a dog that needed surgery on both of his back legs for luxating patella's (8 months apart on both operations) and the cost per leg including pre-op x-rays and evaluations and surgery was $2,100 for a total of $4,200 and I don't get a deduction or tax credit for that, even though my dog is dependent on me.
To continue, most Americans could not even afford to have children if the related deductions and credits were ever taken away combined witht he fact that most people send their kids to public school and the average cost of a public education in the US K-12 is $11,800, paid for by taxpayers (and yeah, property tax payers too), so a middle class family with two kids would be broke without 01 child deductions 02 child tax credits and 03 free public school.
the amt tax isnt phased in at that income level so its in a a range where you can still take high level of deductions your due and keep them. there are years i pay a huge amount in state and local taxes from the sale of properties we are liquidating.
the following year when we go to deduct the amounts we paid when filing we would owe next to nothing. however because our income is over the threshhold for the amt tax it cuts our deductions down to nothing and we pay once again .
if our income was between that level above we would not trigger the amt again and owe very little.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
44,656 posts, read 81,386,567 times
Reputation: 57906
I agree with the child credit, with 2-3 kids and a mortgage to deduct, especially in a high property tax (also deductible) area, you can manage for years without being subject to income tax.When the kids grow up and move out that will change.
Yes, so a few (Less than 1%) who, for odd reasons don't... mean what?
Interesting choice of words... I wonder if they didn't OWE... because they had paid it all during the year, or what...
Well, the article says:
WHat does focusing on one half of one percent mean????
was there something you didn't understand about
Those making $75,000-$100,000 a year are the fastest-growing share of people who don't pay federal income taxes.
I don't pay federal income taxes. My full VA benefits are, child support and rental income are not subject to taxes. But there are so many other taxes I do pay.
Quote:
those who make less than $25,000 a year — account for the largest number of those not paying any federal income tax: 76% as of 2009.
Quote:
As of 2009, more than 20,000 filers making more than $200,000 a year — 1,470 of whom had adjusted gross income of more than $1 million — owed no income tax, a Detroit Free Press analysis showed.
Interesting choice of words... I wonder if they didn't OWE... because they had paid it all during the year, or what...
Yes, so a few (Less than 1%) who, for odd reasons don't... mean what?
Interesting choice of words... I wonder if they didn't OWE... because they had paid it all during the year, or what...
This usually means that the tax filers did not have a "tax liability" meaning that there was no tax due for that year.
As an example, a taxpayer who paid in $6,000 and has a tax liability of $5,000 will get a $1,000 refund when they file their tax return. To put it another way, if someone pays in $6,000 in taxes, at the end of the year they owe nothing, they get a $1,000 tax refund, and their tax liability was $5,000.
These numbers, when unexplained, are often misleading and are often used to spin a political agenda.
Truth is, based on my understanding of how the tax code works, I have no problem generally with people who make $200K or even $1M and have no tax liability.
To get no tax liability with that kind of income, you generally need some sort of loss from a previous year that can be carried over to the current year.
For example, they might have had an investment, business, or capital gain loss in a previous year that was not fully deducted previously. Many such allowable losses are limited where you can deduct only a few thousand dollars each year, but the remaining (undeducted) loss can be carried over to the next year.
Here's one example where something that looks bad is often really a good thing, because it's good to encourage the sort of entrepreneurship and investing which creates these no-tax situations...and more often creates profit, gain, economic growth, and higher tax revenue.
was there something you didn't understand about
Those making $75,000-$100,000 a year are the fastest-growing share of people who don't pay federal income taxes.
Oh, I understand. What YOU evidently do not understand is that that is a FRACTION OFone half of one percent.
That is what is known as statistically insignificant.
freemk:
Thanks, I figured it was something like that.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
