Many Americans fear receiving a tax bill during filing season, but a recent study reveals less than half of taxpayers actually have to pay Uncle Sam.
Data compiled by the Joint Committee on Taxation reveals 51 percent of Americans pay no income taxes, and a large percentage actually earn refunds each year by taking advantage of benefits, the Atlantic reports. Additionally, more than 15 million households receive more in refunds than they pay in taxes due to a large number of refundable tax credits, the news source adds.
Further, a large number of low-income families are able to reduce their tax liability by utilizing a number of credits and benefits.
There are a number of tax benefits available to households of all income brackets and circumstances, so individuals should be proactive about seeking out credits and deductions for which they may be eligible. Consumers should also keep organized records of supporting documents if they plan to claim certain benefits to avoid making errors during filing season. Speaking with a licensed tax preparer in advance may also help consumers understand which types of information are pivotal in order to claim these credits.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.