Majority of federal income tax exempt Nebraskans are employed

Majority of federal income tax exempt Nebraskans are employed

Recently, we’ve been hearing a lot of chatter in the news about the 47% of the population that doesn’t owe federal income tax. So how does Nebraska compare to the rest of the nation?

We found that 38.9 percent of Nebraskans don’t owe federal income tax, a smaller portion than the popular 47 percent figure. It’s also important to note that of the 38.9 percent, the vast majority are either working Nebraskans who do pay payroll tax (66 percent) or elderly Nebraskans (20 percent).

The remaining 14 percent are not working due to illness or disability (6%), students (3%) or other (5%), which includes early retirees and those unable to find work.

Want to read more on this subject?  We like the Washington Post’s WonkBlog.