Paul L. Caron
Dean




Monday, August 23, 2021

61% Of Americans Paid No Federal Income Tax In 2020 (Up From 44% In 2019)

Bloomberg, U.S. Households Paying No Income Tax Hit 61% of Total Last Year:

Nearly 61% of U.S households paid no federal income taxes during pandemic-stricken year of 2020, because of declines in income and boosts to government subsidies that wiped away tax liabilities, according to data from the Urban-Brookings Tax Policy Center.

The number of households owing nothing came in at 106.8 million, up from 75.9 million in 2019, the study, released Wednesday, showed. The 60.6% proportion for last year compares with 43.3% over the five years before the pandemic struck.

Bloomberg

Howard Gleckman (TaxVox), The COVID-19 Pandemic Drove A Huge, But Temporary, Increase in Households That Did Not Pay Federal Income Tax:

The spike is likely to be temporary, however. The share of non-payers will decline to about 102 million or 57 percent this year. And TPC projects that the percentage will return to pre-pandemic levels in 2022 and continue to decline after that, assuming the economy continues to rebound and several temporary tax benefits expire as scheduled.

Last year, the share of non-payers increased by roughly 40 percent from the pre-pandemic year of 2019, due to a combination of a poor economy and multiple rounds of tax-based assistance to hard-pressed households. 

https://taxprof.typepad.com/taxprof_blog/2021/08/61-percent-of-americans-paid-no-federal-income-tax-in-2020-up-from-44-percent-in-2019.html

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