Axios / John MacDougall/Associated PressTaxpayers in the top 1 percent of income earners are getting less than half of the credit for federal taxes, a new report shows.
The Internal Revenue Service’s Taxpayer Advocate Service says in a statement that tax refunds received in 2017 and 2018 by those earning $1 million or more have been about equal to the refund received by those in the middle of the income spectrum, who earned between $50,000 and $150,000.
The IRS said in its statement that the average refund for all tax filers was about $1,300.
The tax credit will be refunded to taxpayers who file a federal tax return that is not adjusted for inflation, and will be used to offset the tax paid by taxpayers in the bottom 90 percent of earners.
A portion of the refund will be distributed to households earning under $25,000, the IRS said.
For example, a $100 tax refund will refund $400 to taxpayers earning between $25 and $99, and a $200 refund will give $800 to taxpayers in that income range.
The refund will also be distributed for filers earning between the $75,000 income threshold and the $1.5 million threshold.
To qualify for the tax credit, taxpayers must have an adjusted gross income of $200,000 or more.
For 2018, that means the income threshold was set at $75.2 million.