- When wealthy taxpayers pay no federal tax, it’s largely because of deductible expenses for travel, charity and medical care, not a business loss
- Thee highest income bracket broken out by the IRS is those earning at least $200,000
- The biggest category, miscellaneous itemized deductions, is driven by unreimbursed employee business expenses like meals, travel and entertainment, and home office expenses
- The top reasons for not having federal income taxes due are the willingness to make charitable contributions and paying for high out-of-pocket medical bills
- In 2013, there were only 901 returns in the US with adjusted gross income of at least $200,000 that had zero income tax liability.
These highlights are from the source article:
The top tax deductions from high-income tax returns