57% of U.S. households paid no federal income tax last year as Covid took a toll, study says
< < Go Back
More than half of American households paid no federal income tax last year due to Covid-relief funds, tax credits and stimulus, according to a new report.
The nonpartisan Tax Policy Center estimates that 57% of U.S. households paid no federal income taxes for 2021, up substantially from the 44% before the pandemic.
Howard Gleckman, senior fellow at the Tax Policy Center, said Covid-related job losses, a decline in incomes, stimulus checks and tax credits were largely responsible for the increase.
The expanded child tax credit was a large factor. It substantially reduced “the income tax liability of more than a hundred million households and temporarily turned many from payers of small amounts of federal income tax to non-payers,” Gleckman wrote.
More From CNBC:
Rss Feed