While most of the four in 10 U.S. households who own an IRA don't plan
to convert those accounts to Roth IRAs this year, tens of thousands,
perhaps even hundreds of thousands, are deciding to take the conversion
step — and many are making some astonishing mistakes that experts say
could be avoided easily.
Another Tax Day, another check to Uncle Sam. Right?
more, though, that isn't the case. Indeed, a growing number of
taxpayers pay no income tax whatsoever. And because of increasing
pressure to expand government even faster than the unsustainable path
it's already on, the United States is on a glide path toward an
economic meltdown. According to the Tax Foundation, the number of
taxpayers that had no federal income tax liability increased 45 percent
between 2001 and 2008.
Last year, millions of Americans received unemployment checks. Which makes for millions of people with some tax-free income. Congress made the first $2,400 of unemployment benefits exempt from federal income tax for last year.
President Barack Obama's push to create jobs includes a new tax credit for small businesses that add employees, an idea that has appeal as the nation struggles with an unemployment rate topping 10 percent.