Because of the coronavirus pandemic, 2020 may be a tax year like no other. Here are answers to some of your top questions.
USA TODAY
How much do Americans pay to Uncle Sam in taxes in their lifetime? It’s a lot.
The average American will shell out $525,037 in taxes throughout the course of their life, according to fin-tech company Self Financial, which analyzed data from the Bureau of Labor Statistics.
Almost 65% of the $525,037 will be tax on earnings, Self Financial says. The amount, however, varies by state. Self Financial used averages for earnings, purchases, real estate and auto property taxes.
Residents of New Jersey, for instance, will pay the most in lifetime taxes ($931,000) while people in West Virginia are poised to pay the least ($321,000), the data shows. Taxpayers in California pay the most on everyday expenses ($40,084), followed by New Yorkers ($39,745).
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Here are other key figures:
- Tax on earnings is where most tax will come from, with the average American paying $339,173 in a lifetime.
- Owning a car will cost an additional $29,521 in tax payments alone.
- Real estate property tax will set you back an additional $128,581.
