Why do I have to pay income tax while others don't?

1. Many of those people have kids and make very little, so all the exemptions cancel out the tax. 2. Tax credits eliminate tax, see above. 3. Many seniors make under the thresshold to report income beyond their SS income. 4. Many wage earners are young dependents who don't make enough to have a tax liability.

People who pay no income tax have little or no taxable income, or are eligible for refundable credits like EIC. Taxable income is after deductions, and exemptions for the taxpayer and any dependents.

WHAT makes you think life is fair??? Your problem will be taken care as you age. Get older and the issue isn't there. If you are a senior and your ONLY income is SS, then you have NO tax liability, no obligation to file a tax return However, if you earn wages and/or dividends and/or interest, while receiving SS, you may be required to file a tax return and to pay tax on up to 85% of your SS, as well as your other income And it is NOT almost half of wage earners, but almost half of Americans, including mostly children, students, and seniors, who have no wages; also including those working part-time and unable to find full time employment or employment paying a living wage http://www.csmonitor.com/Business/Donald-Marron/2011/0728/Why-do-half-of-Americans-pay-no-federal-income-tax

What you are referring to is the taxation of your Social Security benefits. Since you only paid half the contribution (your employer paid the other half) and Social Security was meant to be a safety net, the tax code was set to tax the benefits over $12,000. Unfortunately, the code does not account for inflation and the threshold amount is out of date.

Start by not making up stories

Because they don't make anything above about $12,000 or because they have children young enough to claim as dependents. You are not doing anything wrong.

Short memory.... Children and the Earned Income credit make a huge difference in a tax bill, and you no longer qualify for them.

The filing requirement for someone over 65 is $11,150. My filing requirement is $9750. In order for you to not pay tax, you must either make less, or be able to deduct more or to be able to claim credits. All of which require you to spend even more money than you save. Not worth it.

And as a single taxpayer age 25 and under 65 the amount that is free of FIT for the 2012 tax year is 9750 and the amount that is MORE than this is subject to the FIT amounts. And you as senior age 65 or older your FIT free amount would be 10900 for the 2012 tax year during the 2013 tax filing season for this purpose and time in your life. And some of your SSB amounts are never subject to the FIT rates for this purpose. Because when and if they do become taxable income to you from 50% to 85% of your SSB could become taxable on your 1040 income tax return. Probably because you were and are a lot smarter that they are during this time and managed your affairs good and now when you do have to pay any amounts of income tax you do know that have more spendable income available to you to use as you choose RIGHT. Hope that you find the above enclosed information useful. 08/25/2012