Monday, May 24, 2010

39% of Tennessee federal filers pay no income tax

Tennessee is ranked 11th, only 10 States have a greater percentage of non-filers.

According to the latest IRS figures for 2008, a record 52 million filers—36 percent of the 143 million who filed a tax return—had no tax liability because their credits and deductions reduced their liability to zero. Indeed, tax credits such as the child tax credit and earned income tax credit have become so generous that a family of four earning up to about $52,000 can expect to have their income tax liability erased entirely.