Who Doesn’t Pay Income Tax
Some groups are exempt from federal income tax under the tax code. One of these categories are not-for-profit organizations, or section 501(c)3 organizations, which refers to the section of the IRS code under which they are exempt from paying income taxes of any kind. Another class of tax exempt citizens are foreign citizens who work or stay in America, but are not citizens or resident aliens.
They must generally file an income tax return with their country of origin instead of the IRS. Low-income taxpayers are another tax exempt group, including anyone who does not receive income in any form that exceeds the combined amounts of their personal exemptions and standard deductions. Taxpayers who can claim many personal deductions or have many dependents are also considered tax exempt groups. For example, a couple with six children could conceivably earn around $50,000 and not owe any actual tax.