Federal Income Tax Owed

About 79 million households, or 44% of total households in the USA, didn’t pay federal income taxes in 2019.

In 2020, the number increased to 107 million US households, an equivalent of about 61%. This huge spike was as a result of the shut-down that happened due to the COVID-19 pandemic.

Additionally, Americans received the stimulus checks in 2020 and far fewer households had to pay federal income tax.

As the economy is doing better in 2021, it is predicted that the number of households that owe no federal income tax for this year will decrease to 102 million, or 57%.

The Tax Policy Center expects that the number of non-paying households to return to the pre-pandemic number in 2022, unless Congress extends the boost to the tax credits, which Democrats are considering doing.