Only about 75 million households, or 44%, didn’t pay federal income tax in 2019, said Howard Gleckman, a senior fellow at the center, who called the increase for 2020 “eye-popping, but temporary.”
Together, these meant that far fewer households had to pay federal income tax.
What happens in 2021?
So the number of households that owe no federal income tax for this year will slide to about 102 million, or 57%, Gleckman said.
Effectively no household making less than $28,000 will pay federal income tax — usually about 15% of the bottom income quintile has some tax liability.
And three-quarters of those earning between $28,000 and $55,000 will be spared from income tax liability, compared with about half of the second quintile usually.
Among middle-income households making between $55,000 and $98,000, a quarter won’t have to pay federal income taxes, compared with about 18% typically.
“The people who really benefit the most are low-income families with kids,” Gleckman said.