47% of households pay no federal income taxes

A new report from the nonpartisan Tax Policy Center finds that roughly 47% of households won't end up owing any federal incomes taxes for the year 2009.

Most households earning less than $30,000 per year fall into this category, as do nearly half of those earnings between $30,000 and $40,000. Some 22% of households earning between $50,000 and $75,000 pay no income taxes, and an alarming 9% of households between $75,000 and $100,000 pay no taxes.

Those figures don't include payroll taxes.

Most people agree that a progressive tax structure makes sense: It's better to fuel government programs with cash from people who have enough than from milking people who are struggling to put food on the table.

But on the other hand: Isn't it problematic to have a democracy where 100% of households can vote on how money is spent when only 53% of households are contributing to the pot? If a larger percentage of the population paid taxes, would we be tougher on overspending in Washington?

In a country with as much income inequality -- not that there's anything wrong with that -- as the United States, the rich will always pay the overwhelming majority of taxes. But it seems that everyone -- or nearly everyone -- should pay some token amount, if only to give them an incentive to focus on how their money is being spent.

Tax Tips for the Blind

Anyone whose field of vision falls at or below 20 degrees, who wears corrective glasses but whose vision is 20/200 or less in his best eye, or who has no eyesight at all, meets the legal definition of being blind and is eligible for certain tax deductions.

Read More

Brought to you by TurboTax.com

What Is a 1099-G Tax Form?

The most common use of the 1099-G is to report unemployment compensation as well as any state or local income tax refunds you received that year.

Read More

Brought to you by TurboTax.com

Filing Tax Form 2441: Child and Dependent Care Expenses

There are a number of eligibility requirements you must satisfy before potentially receiving a child or dependent care credit, so it's a good idea to familiarize yourself with the rules before preparing Form 2441.

Read More

Brought to you by TurboTax.com

7 Requirements for the Child Tax Credit

The Child Tax Credit can significantly reduce your tax bill if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit.

Read More

Brought to you by TurboTax.com
Read Full Story
Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.