Watch CBS News

Good Question: Who Doesn't Pay Federal Income Tax?

MINNEAPOLIS (WCCO) -- The Tax Day deadline means millions of Americans have been scrambling to get their taxes done on time.

But millions more, 40 percent of the population, don't have to.

So who doesn't pay federal income tax? Good Question.

Mark Bakko is a tax partner at Baker Tilly in Minneapolis. He's done taxes for 32 years and he said many Americans don't have to file because of their income.

"Generally, if your income is below $10,000 if you're single, $20,000 if you're married. But much lower if you can be claimed on mom and dad's return," said Bakko.

College students usually don't have to worry because they don't make enough money. And Bakko said if it stays that way their parents can claim them as a dependent until they're 24 years old.

In many instances, the elderly also don't have to file federal income taxes.

"If you're retired and you only collect social security, you would be below the filing requirement," said Bakko.

And of the 70 million Americans who don't have to pay taxes, many of them do make enough money to file tax returns. But credits like "child tax credits," or "retirement saver's credit," help bring what they owe down to zero.

Bakko said in most cases in our state, if you don't have to pay Uncle Sam at the federal level you don't have to pay him at the state level either.

"Minnesota follows federal, so if you are exempt from federal you're also exempt from Minnesota," said Bakko.

But Bakko said you still might have to pay payroll taxes in our state.

That includes things like FICA and Medicare that are taken out of your paycheck.

And of course, none of us are completely immune from taxes.

We're paying sales tax and other government-related taxes every day.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.