61% of People paid no federal revenue taxes in 2020, Tax Coverage Middle says

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More than 100 million US households, or 61% of all taxpayers, did not pay federal income taxes in the past year, so a new report.

The pandemic and federal incentives resulted in a huge increase in the number of Americans who either owed no federal income tax or received tax credits from the government. According to the Urban-Brookings Tax Policy Center, 107 million households owed no income tax in 2020, up from 76 million – or 44% of all taxpayers – in 2019.

“It’s a really big number,” said Howard Gleckman, a senior fellow at the Tax Policy Center. “It’s really ephemeral too.”

Gleckman said the main reasons for the surge – high unemployment, extensive economic controls and generous tax credits – would largely end after 2022, so the proportion of non-taxpayers would start to decline again from next year.

The percentage of Americans who do not pay income taxes is expected to remain high this year at around 57%, according to the Tax Policy Center. It is expected to drop back to 42% in 2022 and stay at around 41% or 42% through 2025, “assuming the economy continues to recover and several temporary tax breaks expire as planned,” Gleckman said.

Although fleeting, the large number of non-taxpayers will fuel the debate in Congress about higher taxes for the rich. Many Democrats say the rich don’t pay their fair share, citing a number of recent articles in ProPublica showing that billionaires are including Jeff Bezos and Carl Icahn No federal income tax paid in certain years. The $ 3.5 trillion reconciliation bill in Congress is expected to include increases in capital gains taxes, a higher top ordinary income rate, a higher corporate tax rate, and other measures aimed at those earning $ 400,000 or more.

Some Republicans argue that the tax structure is already progressive and relies heavily on the income of a small group of high earners and corporations at the top, while many Americans pay little or no tax. The percentage of Americans who do not pay federal income taxes has been about 44% over the past decade, according to the Tax Policy Center.

The top 20% of taxpayers paid 78% of federal income taxes in 2020, up from 68% in 2019, according to the Tax Policy Center. The top 1% of taxpayers paid 28% of taxes in 2020, up from 25% in 2019.

For 2021, the congress is the size of Child tax credit, the Earned Income Tax Credit, and the Child and care allowance – All of this erased federal taxes owed millions of American families.

No household earning less than $ 28,000 will pay federal taxes this year due to the loan and tax changes, according to the Tax Policy Center. About 43% of middle-income households do not pay federal income tax.

Income tax equalization payments last year for many families in terms of dollars have been small, Gleckman said.

“Imagine if someone owed $ 1,500 in income tax in 2020 until they received two stimulus payments – $ 1,200 in April and $ 600 in December,” he said. “That put them in the non-payers category. While the payments resulted in a large percentage increase in their after-tax income, the dollar amount of their tax cut was only a tiny fraction of a high-income applicant who received a tax cut from. got, say, $ 30,000 in 2017 [Tax Cuts and Jobs Act]but still owed some taxes. “

Federal income taxes do not include wage taxes. The Tax Policy Center estimates that only 20% of households have not paid federal income tax or wage tax. And “almost everyone” paid a different form of tax, including state and local sales taxes, excise taxes, property taxes, and state income taxes, the report said.

How a lot Mega Thousands and thousands, Powerball winners have paid in 2021 taxes

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As for the lottery, it’s been a good year for Uncle Sam so far.

The winners of the Powerball and Mega Millions jackpots – valued at a total of $ 2.9 billion – together paid approximately $ 515 million to the IRS in 2021. And that won’t be the end.

Whether jackpot winners choose the instant, discounted cash option (most do) or a three-decade pension, 24% is withheld for federal taxes. However, since the 37% maximum rate applies to income over $ 523,600 (sole taxpayer) and $ 628,300 (married couples filing together), you end up owing more.

There have been five Powerball jackpot winners so far in 2021 – and the pace of those wins could pick up, because a third weekly drawing will be added on Mondays from August 23.

Mega Millions has four winners this year (but the jackpot of $ 55 million won on June 8 remains unclaimed). For all prizes collected, the winners chose the cash option instead of the pension.

For the three Mega Millions jackpots claimed – which ranged from $ 96 million to $ 1 billion – the winners’ cash options totaled $ 1.2 billion. The federal 24% withholding tax totaled $ 288 million, bringing total revenue down to $ 912 million.

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Powerball winners have a total of $ 945.7 million in cash options, with jackpot amounts ranging from $ 23.2 million to $ 731.1 million. After the 24% federal withholding of $ 227 million, the winners were left with $ 718.7 million.

To illustrate, if the winners were unable to reduce their taxable income at all, another 13% – the difference between the 24% withheld and the top tax rate of 37% – would be due to Uncle Sam. Taken together, that would be another $ 278.9 million going into the federal treasury (a total of $ 793.9 million).

Of course, these lottery winnings generally only add a drop in the federal tax bucket. Income taxes paid by individuals are expected to represent approximately $ 1.9 trillion (50%) of the estimated $ 3.8 trillion in government revenue for fiscal 2021.

Local cash registers also benefit from big lottery winnings. State taxes ranging from zero to more than 8% would also be levied depending on where the ticket was purchased.

Like the state withholding tax rate on jackpot winnings, the amount withheld for state taxes can be less than you owe.

There are ways to reduce taxation on your profits, though not many. For 2021, due to a temporary change in federal regulations, charities can reduce their taxable income by making a qualified monetary donation of up to 100% of their adjusted gross income (this limit is expected to fall back to 60% in 2022).

Some lottery winners set up their own charitable foundation or a similar facility, such as a fund advised by donors, and donate part of their profits to it.

The Mega Millions jackpot is $ 179 million ($ 129.5 million cash option) for the Tuesday night drawing. Powerball’s jackpot is $ 211 million (cash option of $ 153.9 million) with the next drawing scheduled for Wednesday night.

Your chance of winning Powerball is 1 in 292 million. For Mega Millions, it’s 1 in 302 million.

How Citibank By accident Paid Revlon’s $900 Million Mortgage : Planet Cash : NPR

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April 6th, 2021, Schleswig-Holstein, Amt Rantzau: A blackbird has caught an earthworm.  Photo: Marcus Brandt / dpa (Photo: Marcus Brandt / picture alliance via Getty Images)

picture Alliance / Marcus Brandt / Picture Alliance via Getty Images

Last year Citibank accidentally sent $ 900 million to lenders for makeup company Revlon. In finance, wrong payments happen all the time, and it’s understandable, so to speak, that they have to be sent back. And everyone thought that was going to happen – except that the lenders wouldn’t. And then a surprising court ruling said lenders could keep it. What began as a nasty lender-borrower battle and escalated into the most incredible Wall Street gossip tells us a lot about who is currently in power in finance.

What happens in this episode when one of the largest banks in the world accidentally sends $ 900 million to exactly the wrong group of people – and tries to get it back.

Music: “Mentally, “”Playful Palmas, “”Bleep core,” and “Blip blip beep. ”

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Highest Paid U.S. Cash Makers In Music: 2020 Rankings

While the pandemic had a catastrophic impact on tour revenue, it increased other royalties as music fans heard more recorded music from the relative safety of their homes via the radio, streaming platforms, or the turntable setups they bought with the money they usually have would be spent on concerts and festivals.

Music recording royalties – from sales, streaming, and publishing – combined increased 56% from $ 197 million in 2019 to $ 308 million. Individually, artist streaming royalties rose a whopping 82% year on year, from $ 106 million to $ 193 million, and made up nearly 50% of the total income of the top 40 moneymakers. Sales licenses, digital and physical, also increased 39% from $ 42 million to $ 59 million; a trend that has continued this year until now.

The list is divided into 22 contemporary artists and 18 heritage artists. (Only live acts were included on this list.) By genre, rock artists took the most places, 13 fewer than last year; Pop acts made up nine entries, up from 14; Land, three points, less than eight; and Latin, two places up, one place up 2019. (As in previous rankings, DJs are included in Money Makers because they rarely report their live earnings, which make up the majority of their income.)

The genre with the biggest gains is R&B / Hip-Hop, which has 12 artists this year, up from three in 2019. When the tour is in full bloom, heritage rockers, country artists and jam bands dominate Money Makers gross because of their concert. In 2020 hip hop was going strong because its artists often have a strong streaming game. On this year’s list, six hip-hop artists who didn’t make the 2019 list ranked in the top 20. Three of them – drake, YoungBoy never broke again and Little baby – placed in the top 10.

1. Taylor Swift: $ 23.8 million

Rank last year:
Stream: $ 10.6 million
Sales: $ 10 million
Publication: $ 3.2 million
Tours: $ 0

Huge Time Leisure mortgage already paid off, opening nonetheless unsure | Oxford

OXFORD- Big Time Entertainment’s owners have already returned funds to the city to get the company’s entertainment complex project underway.

“When we made this deal with Big Time Entertainment, some critics said it was a waste of money,” Mayor Alton Craft told council members shortly before the end of the meeting. “If you’ve seen any of this, your belief was not out of place. This is going to be something spectacular. ”

The Big Time Entertainment complex, located off Exit 185 off Interstate 20, is nearing completion. The most obvious result is an outdoor mini golf course with man-made rock walls and mountains. Pictures from Big Time Entertainment’s social media pages show a completed laser tag court along with a few other attractions.

Attempts to reach the owners of Big Time Entertainment were unsuccessful through multiple attempts last week; the brand’s Facebook page is forecasting a “summer” opening but is not offering any elaboration.

The city council also has in its session:

– Awards presented to city fire brigade employees that would have been given out for Christmas, but the COVID-19 pandemic resulted in the holiday portion being canceled.

– Updated city code to add a seat to the Keep Oxford Beautiful Board and appointed Gwen Parrish to that seat.

– Authorized Craftsman and Town Clerk Alan Atkinson as the signatory for the town safe deposit box at BBVA Bank.

– Approve an easement with Alabama Power on Leon Smith Parkway for utility companies; Craft said it was one of the last easement agreements to be made on the Leon Smith Parkway road expansion project.

– Condemned a building at 316 West Fifth Street. At a public hearing on Tuesday evening, no one spoke on behalf of the property.

Metro Editor-in-Chief Ben Nunnally: 256-235-3560.

Colorado unable to trace cash paid into unemployment fund

DENVER (AP) – A Colorado unemployment insurance audit failed to validate the accounting for hundreds of millions of dollars inside and outside the Colorado Department of Labor and Employment.

“The state of Colorado did not have an adequate method of establishing the estimated amount of claims and liabilities within the unemployment insurance fund,” the audit said.

The audit means the state has not been able to track $ 510 million received from the Department’s employer rewards and coronavirus aid assistance, nor has it tracked $ 872 million in unemployment claims until the end of June reported KUSA-TV on Tuesday.

“Yes, our books on it were a little lousy to the reviewers, and we’ve gone back and spoken, and we’re working to keep that from happening,” said division chief of staff Daniel Chase.

The audit also found that the department provided financial information that was inaccurate after the audit deadline.

“We made retroactive adjustments to our books of accounts, but that was late, and again they were using a method that the auditors just didn’t quite approve of,” Chase said.

The department received 548,000 unemployment claims from July 2019 to June 2020, equivalent to about five years of work, compared to the average 109,000 claims over the past three years. Of the more recent claims, 337,000 – or 60% – were filed between March 15 and April 30, 2020.

Chase attributed the discrepancies in part to changes in finance management and efforts to reorganize and reorganize the department. The department lost its controller, its deputy controller, and several subordinates. A new system was also introduced which was delayed, leading to more fraudulent claims.

The state has borrowed $ 930 million to support its unemployment insurance and continues to borrow loans to meet unemployment claims.

The fund is expected to be replenished through higher premium rates for employers, and Chase estimates his balance will be positive in 2026.

“I don’t think employers will ever feel good about giving us more money,” said Chase. “I think that with all of the measures we were taking at this point, we started in August before this exam and have been moving forward since then, giving us confidence in what we will do in the future. ”