No one enjoys receiving a bill from Uncle Sam at the end of tax filing season, and the results of a new study show fewer Americans will have to worry about owing the government during the 2011 tax year.
Data released by the Tax Policy Center reveals 46 percent of Americans - or 76 million - will not have to pay federal income taxes for the 2011 tax season. However, more than 50 percent of individuals who are exempt from paying federal taxes fall within the country's lowest income brackets, and make less income than 80 percent of the rest of the nation. Additionally, many low-income individuals are not exempt from other types of taxes, such as those imposed by the state.
In addition to taxpayers who fall into a low-income bracket, roughly 12 percent of individuals who are considered middle-income and an even smaller percentage of high-income earners will not face tax liabilities in 2011. Many of these individuals and families have eliminated their tax burdens through the use of credits and deductions.
As tax policies continue to change amid economic turmoil, Americans should keep a close eye on the amendments and alterations to existing credits and deductions. Taxpayers may realize they now qualify for certain benefits for which they were previously ineligible.
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.