Far fewer Americans owed federal income tax in 2020 because of the pandemic
By Tami Luhby Nearly 107 million US households — about 61% — owed no federal income tax in 2020, a huge spike from pre-pandemic times. But that increase should be short-lived. The coronavirus-fueled upheaval in the economy, whichĀ cost more than 20 million jobsĀ in April 2020, and the sweeping federal relief packages drove up the share of non-payers by roughly 40%, according to the nonpartisan Tax Policy Center. Only about 75 million households, or 44%, didn’t pay federal income tax in 2019, said Howard Gleckman, a senior fellow at the center, who called the increase for 2020 “eye-popping, but temporary.” Many