Who's Not Paying Income Taxes? - KMOV.com

Who's Not Paying Income Taxes?

The Tax Policy Center (a research group) says that about 47% of households in the U.S. will not pay federal income taxes for 2009.

The Associated Press reported the story today.

Last June, a senior fellow at the Tax Policy Center wrote an analysis titled:  "Who Pays No Income Tax?" :   www.taxpolicycenter.org/UploadedPDF/1001289_who_pays.pdf

Roberton Williams also wrote an OP-ED piece, published in the Washington Post - saying 45% of households will not owe federal income taxes in 2010:  www.taxpolicycenter.org/publications/url.cfm

Williams writes that many will not owe because of earned income credits, the HOPE credit, and credits for retirement savings contributions.

Read what the IRS says about earned income credits here:  www.irs.gov/individuals/article/0,,id=96406,00.html

Illinois also has a state earned income tax credit:  www.irs.gov/individuals/article/0,,id=177866,00.html

Read what the IRS says about the HOPE credit: www.irs.gov/formspubs/article/0,,id=177996,00.html

Read about the retirement saver's credit here: www.irs.gov/newsroom/article/0,,id=172969,00.html

Other credits include:  Making Work Pay, Government Retiree Credit, First-Time Homebuyer Credit, Refundable American Opportunity Credit, and the Health Coverage Tax Credit.

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