2009 Taxes: Nearly 50% Of America Will Pay No Fed Income Taxes

By Phillip Williams on April 11, 2010, 6:31 am Posted in Finance News

Tax day is almost here. Are you ready? It may not be as bad as you fear. Almost 47% of Americans will not be paying federal income taxes for 2009, according to the Tax Policy Center in Washington. Some, in fact, will profit from the new tax credits. If the credits equal to more than they owe, the government will pay them the difference.

Who Benefits

Part of this is due to the expanded tax cuts for low and middle income families – part of the economic recovery deal that President Obama signed last year. Credits galore are available thanks to Obama. The better-known tax credits for college expenses, energy efficient upgrades, or buying a new home are still in effect. So is the new Making Work Pay credit, which gives as much as $800 to couples and $400 to individuals because they are employed.

This, however, does not mean that these people are exempt from paying all federal taxes. Federal payroll taxes that fund programs like Social Security and Medicare are still deducted. Not to mention incidental federal taxes, like the ones found on gas or alcohol, cannot be avoided.

Don’t Ignore April 15th

It is still better to file, even if you are sure you will not be paying anything. Even though penalties occur if you owe, you will not get your refund of taxes withheld by employers if you do not file. Not to mention qualifying for credits equaling more than the taxes owed.

 

If you are part of the nearly half of Americans that will not be paying taxes for 2009, be sure to thank the ones that are. Without them, public safety and education, as well as other programs, would not exist. Just how is not paying taxes supposed to be good for the economy? There is no incentive to do better if it can be had for free.

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One Response to “2009 Taxes: Nearly 50% Of America Will Pay No Fed Income Taxes”

1. Jo says:

   April 11, 2010 at 9:13 am

   50% of America will not pay federal income taxes. A lot of people just earn enough to pay their necessary expenses and retirement savings. That is because those at the top don’t pay high enough wages.

   What we should measure it by is how much is left after paying average living expenses and retirement savings. If the taxes were charged that way they would be more fair.