Out of the 3.9 million homes that reported a modified gross salary of $200,000 or even more in 2009, more than ten thousand homes paid nothing in taxes, according to a new study from the IRS.
How’d they do it? According to the study, nearly one-third of the high-income taxpayers used miscellaneous rebates such as non-reimbursed worker expenses. Other massive reasons for tax deductions included charitable contributions, medical expenses, and losses related to an incorporated small enterprise.
“High-income returns are way more often nontaxable on account of a mixture of reasons, none of which, on their own, would lead to non-taxability,” recounted the study.
The Buffett Rule, a proposal from President Barack Obama, could change that. The suggested rule would impose a thirty percent minimum taxation rate on those who fall into the highest income bracket, which could limit some of the refunds the affluent use to scale back their tax load.
The new study’s information from 2009 also reflects a dip in revenues from 2008, likely related to the financial disaster and recession. The total number of taxpayers who reported making earnings of more than $200,000 dropped by over eleven percent between 2009 and 2008.
Utilizing the tax code to your benefit a la Mitt Romney has been a hot topic this year, as the fairness of the U.S. Tax code remains scrutinized. Loopholes and various adjustments in the tax code have fueled a small-scale industry for tax professionals and accountants who offer guidance on the way to make your IRS tab less expensive.
Tax pros are already looking forward to 2012 taxes, when the tax burden to some U.S. taxpayers could change significantly with the expiration of numerous tax cuts and other non-permanent tax reductions.
If you or someone you know is facing IRS tax problems, do not hesitate to call the professionals at JG Tax Group to help secure your financial future.
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