All about taxes
In FY 2024...
$2.4T
$1.7T
$530B
How does it all work? Let's peak behind the curtain:
How do tax payments vary between income levels?
Effective tax rates have declined across income groups, but the portion of taxes paid by high income people has grown since TCJA was enacted in 2017.
The Earned Income Tax Credit is designed to benefit low-income workers, particularly those with children. In 2022, 24.1 million tax returns claimed the EITC, and benefits totaled $60.1 billion.
Steve Ballmer explains the whole US tax system in 16 minutes
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Who pays no federal income tax?
A large portion of people do not pay federal income taxes because they do not have federally taxable income after accounting for deductions.
In 2018, 34.7% of all tax returns did not have taxable income and, thus, did not pay federal income taxes, up from 32.1% in 2017. The portion not paying federal income taxes is concentrated among low-income people and grew after TCJA took effect.
How many people take SALT deductions?
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Trends in itemized deductions since the Tax Cuts and Jobs Act
Among the many changes introduced by the Tax Cuts and Jobs Act of 2017 (TCJA), one of the most significant was nearly doubling the standard deduction and scaling back some itemized deductions.
How many people claim the state and local tax (SALT) deduction?
The Tax Cuts and Jobs Act of 2017 introduced a $10,000 cap on the State and Local Tax (SALT) deduction while also nearly doubling the standard deduction.
How did the Tax Cuts and Jobs Act impact pass-through entities?
In 2022, 15.9% of tax returns claimed the Qualified Business Income (QBI) deduction, collectively lowering their taxable incomes by $216.1 billion.
