4 ms·

> if your family makes under $60k you are almost certainly paying no income taxes How is this possible? Where I live, you can expect to pay around 30% of your

> if your family makes under $60k you are almost certainly paying no income taxes How is this possible? Where I live, you can expect to pay around 30% of your income as tax almost regardless of how much money you actually make (as long as it's above something like $600 a year).

alright2565 3y ago
Pretty easy, assuming 2 kids filing jointly. Standard deduction is $29,200, so effectively only $30k of taxable income. Of that, 23k is taxed at 10%, 7k @ 12%, or $3.14k/10.5% effective. Then $1.6k/kid gets subtracted due to the Child Tax Credit, for a net -$700 in taxes paid. Keep in mind the cost of living in the USA is higher than many other countries. 60k for a family of four is doable in most places, but it is not a life of luxury. edit: the family will also end up paying 7.65%/$4.6k in a separate tax for a mandatory retirement scheme (FICA)
- valicord 3y ago
  -$70, not -$700, assuming the rest of your numbers are correct
asadotzler 3y ago
Yes. If you and your spouse both make minimum wage and not a cent more, and you have two children or more, you can come out about even. How many two child families do you know with both parents earning absolute minimum wage?
- refurb 3y ago
  You can make significantly more than minimum wage and pay no taxes.
- LoganDark 3y ago
  I don't think it's possible to make a living on minimum wage. Isn't that below the federal poverty line?
throwaway173738 3y ago
Where do you live? In the US federal taxes are capped if you’re below the standard deduction. You still have to pay social security and medicare taxes but those are about 6%. Some states have an income tax but most do not. Do you live somewhere where there is an income tax?