Let’s take a look at what’s going on and see if we can’t learn something about reducing our own tax liability.
Large Incomes Paying Zero Tax
We know that many households don’t make enough money to pay tax, but let’s take a look at the top 10% of earners. There’s a table showing how many aren’t paying tax by income level. Check out some of the numbers:
Income levels of the top 10% and number of filers paying zero tax:
$163,173 – $210,997: 57,000
$210,998 – $532,612: 78,000
That’s 162,000 households paying zero tax… on large incomes. Obviously there’s some substantial tax planning going on there, let’s dig a little deeper…
Which Tax Credits Do They Use?
A supplemental Tax Policy Center paper that explains in depth who doesn’t have to pay tax and which tax credits (if any) they are using to bring them into the zero tax category can help us all with some tax planning.
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