Almost 107 million households owed no federal income tax in 2020, due to the pandemic’s economic upheaval and the government responses. But the situation is both unusual and temporary as the economy improves and pandemic-related tax credits fade away.
Nearly two-thirds of America’s households owed no federal income tax in 2020, due to the pandemic’s economic upheaval and the government responses, like stimulus checks, crafted to counter the financial damage.
But the situation is both unusual and temporary as the economy improves and pandemic-related tax credits fade away, noted Howard Gleckman, a senior fellow at the Washington, D.C.-based think tank. That can be partly attributed to the tax effects of the third round of stimulus checks and boosted credits like the child tax credit and earned income tax credit, Gleckman said.Assuming tax laws stay where they are now, an estimated 74.8 million households will not face a federal income tax bill in 2022, the estimates showed.
Many of those people, he added, were on the lower end of the income ladder and, as a result, faced smaller income tax bills to begin with. Without income to report, their tax exposure fell even lower. Stimulus checks Secondly, the two rounds of stimulus checks in 2020 effectively reduced the liability even further, Gleckman said. Technically speaking, the economic impact payments were refundable tax credits that the Internal Revenue Service paid in advance.
“ The American Rescue Plan passed in March exempted the first $10,200 in jobless benefits from federal income taxes. ”
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
SixTONES' 'Mascara' Hits No. 1 on Japan Hot 100 With Half-Million CDs SoldSixTONES’ new single “Mascara” soars to No. 1 on this week’s Billboard Japan Hot 100, dated Aug. 9 to 15, with 504,232 CDs sold in its first week.
Consulte Mais informação »
Questions You Should 100% Ask Your Partner Before Getting MarriedMarriage isn’t just a way for a father to get a fair price for his daughter with the help of a dowry, it’s also a bond of everlasting love. Here are several questions every couple should ask each other before saying “I do.”
Consulte Mais informação »
FTSE 100 slumps as commodity producers struggleA downturn in commodity prices blasted the FTSE 100 on Thursday.
Consulte Mais informação »
AstraZeneca CEO Soriot tops FTSE 100 pay-out charts in 2020 -reportPascal Soriot, the chief executive of COVID-19 vaccine maker AstraZeneca (AZN.L), was Britain's highest paid company boss in 2020, a year when the average FTSE 100 leader saw their pay fall by almost a fifth, a report on Thursday showed.
Consulte Mais informação »
The Cloud 100 Rising Stars 2021: Meet Cloud Computing’s New Vanguard, From GlossGenius To TRM LabsThese up-and-comer startups of the Cloud 100 Rising Stars are thinking outside the box, from blockchain intelligence to helping salons stay in business.
Consulte Mais informação »