How do you Make $45,000, and Still be a Nonpayer
At their Tax Policy blog today, the Tax Foundation has a "must see" chart (below) that shows "how a family of four with $45,000 in income become nonpayers." First, subtract the standard deduction and personal exemption. Then subtract two child credits and receive a $450 earned income tax credit. That's how someone begins with an initial liability of $1,813, but ends up receiving a "refund check" of $637.
Here's the chart from the Tax Foundation:
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