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More than half of American households didn’t pay any federal income tax last year

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Around 31 million more households didn’t have to pay federal income taxes in 2020 than in 2019. That’s a 40% increase, according to new data from the Urban-Brookings Tax Policy Center.

According to data from the think tank, 106.8 million households owed no federal income taxes in 2020, or 61% of households who paid taxes. In 2019, this number was 75.9 million households, or about 44% of taxpaying households. Job losses and pandemic-era financial aid are the sources of this savings, so researchers say it’s likely just a one-year spike.  

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