Year | Number of Zero-Tax Filers | Zero-Tax Filers as a Percent of All Filers |
---|---|---|
1980 | 20,000,000 | 21.3% |
1985 | 18,800,000 | 18.5% |
1990 | 23,900,000 | 21.0% |
1995 | 29,000,000 | 24.5% |
2000 | 32,600,000 | 25.2% |
2005 | 43,800,000 | 32.6% |
2010 | 58,400,000 | 40.9% |
2015 | 51,400,000 | 34.1% |
Update: for the 2020 tax year, Congress temporarily changed the law to allow you to deduct up to $300 ($600 if filing jointly) as an “above the line” deduction for charitable giving if you use the standard deduction. You still must itemize if you want to get any tax advantage from donations beyond $300. The same law also temporarily removed the limit that restricted the amount of charitable donations that could be taken as itemized deductions to 60% of your adjusted gross income. For tax years 2020 and 2021, you can deduct up to 100% of your adjusted gross income this way. |
$28,650 | Total Income |
---|---|
$39,000 | Employment income |
−$6,000 | 401k deposit |
−$400 | Commuter checks |
−$2,750 | Business expense |
+$1,800 | Business income |
−$3,000 | Capital loss |
$19,150 | Adjusted Gross Income (AGI) |
---|---|
$28,650 | Total Income |
−$3,500 | Health Savings Account contribution |
−$6,000 | IRA contribution |
$6,950 | Taxable Income |
---|---|
$19,150 | Adjusted Gross Income |
−$12,200 | Standard deduction |
$0 | Tax Owed |
---|---|
$695 | Tax on the $6,950 taxable income |
−$695 | Retirement Savings Tax Credit |
$20,740 | Free-and-clear |
---|---|
$39,000 | Employment income |
+$1,250 | Sale of the dot-com stock |
+$1,800 | Home business earnings |
−$12,000 | Retirement savings |
−$3,500 | Health savings |
−$2,750 | Business expenses |
−$3,060 | Social insurance tax |