All posts from in,

IRS Reports 5.3M Americans Had Incomes Above $200,000 In 2012

The U.S. Tax Code is ridiculously complex and full of potential loopholes, and there are at least a few stories in the media every year about rich people using foundations, trusts and other legal loopholes to end up paying little to no taxes. Well, it turns out there is at least a kernel of truth to these stories. Although the percentages are small, there were almost 14,000 tax filers in 2012 among the 5.3 million filers with adjusted gross incomes above $200,000 who paid no income taxes in the U.S. or anywhere else.

Of note, the main reason for high income individuals having no income tax liability in most cases is that all or nearly all of their income was tax exempt interest income.

IRS looks at both U.S. and worldwide income tax liability