Federal income tax: Far fewer Americans owed any in 2020 because of the pandemic - News Summed Up

Federal income tax: Far fewer Americans owed any in 2020 because of the pandemic


(CNN) Nearly 107 million US households -- about 61% -- owed no federal income tax in 2020, a huge spike from pre-pandemic times. Only about 75 million households, or 44%, didn't pay federal income tax in 2019, said Howard Gleckman, a senior fellow at the center, who called the increase for 2020 "eye-popping, but temporary." Many people who lost their jobs or had their hours curtailed last year were lower-wage workers who may have paid little income tax prior to the pandemic. In addition, millions of Americans received up to $1,800 each in stimulus checks , which were actually refundable tax credits that significantly reduced people's 2020 tax liability, as part of two congressional rescue deals. Together, these meant that far fewer households had to pay federal income tax.


Source: CNN August 19, 2021 09:56 UTC



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