Table 2.--Individual Income and Tax Data, by State and
Size of Adjusted Gross Income, Tax Year 2006
[Money amounts are in thousands of dollars]
Size of adjusted gross income
Item All returns Under $50,000 $75,000 $100,000 $200,000
$50,000 [1] under under under or more
$75,000 $100,000 $200,000
(1) (2) (3) (4) (5) (6)
ARIZONA
Number of returns 2,596,639 1,745,224 353,823 205,608 219,124 72,860
Number of joint returns 1,036,640 417,286 214,429 159,810 184,043 61,072
Number with paid preparer's signature 1,522,584 999,209 208,318 119,894 136,360 58,803
Number of exemptions 5,492,421 3,276,961 863,348 545,865 602,017 204,230
Adjusted gross income (AGI) [3] 147,978,344 36,324,979 21,732,603 17,738,595 29,006,963 43,175,204
Salaries and wages in AGI: [4] Number 2,182,258 1,445,157 306,513 179,261 191,368 59,959
Amount 97,961,641 31,584,856 16,765,792 13,329,737 20,546,171 15,735,086
Taxable interest: Number 1,118,402 512,182 206,228 147,022 183,780 69,190
Amount 4,179,248 868,552 416,817 344,844 674,659 1,874,377
Ordinary dividends: Number 550,818 221,787 92,819 73,528 109,581 53,103
Amount 3,260,435 470,337 291,469 263,403 587,333 1,647,895
Business or profession net income (less loss): Number 379,295 215,328 57,356 38,495 48,240 19,876
Amount 4,440,597 1,035,922 533,561 466,523 1,020,473 1,384,117
Number of farm returns 8,223 3,822 1,210 960 1,255 976
Net capital gain (less loss) in AGI: Number 494,987 193,533 79,681 64,139 102,273 55,361
Amount 15,214,819 518,312 349,943 439,710 1,564,177 12,342,676
Taxable individual retirement arrangements distributions: Number 194,102 96,765 36,672 25,150 27,373 8,142
Amount 2,655,185 675,150 450,144 429,172 716,670 384,048
Pensions and annuities in AGI: Number 469,292 245,269 88,838 57,773 61,298 16,114
Amount 9,267,030 2,934,064 1,919,785 1,569,207 2,125,638 718,336
Unemployment compensation: [5] Number 73,088 55,449 9,462 4,313 3,370 494
Amount 219,383 164,454 28,511 13,196 11,061 2,160
Social Security benefits in AGI: Number 287,414 124,787 68,127 40,551 39,922 14,027
Amount 3,053,232 585,436 867,208 649,869 690,311 260,407
Self-employment retirement plans: Number 17,739 2,740 1,967 2,154 5,359 5,519
Amount 319,560 18,535 16,938 23,422 86,046 174,619
Total itemized deductions: [6] Number 1,007,519 360,021 221,139 160,136 196,378 69,845
Amount 24,264,291 5,254,002 4,210,834 3,498,274 5,592,763 5,708,418
State and local income taxes: Number 718,192 194,567 161,484 127,567 170,466 64,108
Amount 3,663,554 213,812 327,986 371,466 876,309 1,873,984
State and local general sales tax: Number 271,689 149,192 58,710 32,279 25,781 5,727
Amount 484,710 153,832 114,250 80,129 89,455 47,044
Real estate taxes: Number 903,620 298,928 199,781 149,923 187,637 67,351
Amount 1,821,354 453,882 317,516 263,015 440,811 346,130
Taxes paid: Number 1,009,164 359,777 221,966 160,640 196,807 69,974
Amount 6,419,093 929,531 847,526 791,918 1,519,904 2,330,214
Mortgage Interest paid: Number 884,222 296,010 199,110 147,524 180,477 61,101
Amount 11,251,045 3,042,312 2,195,862 1,602,652 2,691,068 1,719,152
Contributions: Number 836,419 259,036 186,103 142,474 182,449 66,357
Amount 3,261,912 434,646 424,610 398,963 720,453 1,283,241
Taxable income: Number 2,034,757 1,188,283 350,419 204,847 218,538 72,670
Amount 100,255,128 16,281,280 13,570,495 12,013,816 21,230,716 37,158,820
Total tax credits: [7] Number 866,497 478,053 160,371 103,567 94,841 29,665
Amount 958,355 359,572 248,186 170,067 110,607 69,924
Residential energy tax credit: Number 57,661 14,654 14,512 11,589 13,354 3,552
Amount 15,870 3,431 3,811 3,221 4,018 1,388
Child tax credit: Number 541,836 297,166 119,708 73,081 51,831 50
Amount 652,796 250,360 198,942 129,084 74,365 43
Child and dependent care credit: Number 108,089 41,754 24,415 18,473 19,376 4,071
Amount 55,965 21,136 12,564 9,810 10,266 2,190
Earned income credit: [8] Number 426,022 426,022 0 0 0 0
Amount 817,955 817,955 0 0 0 0
Excess earned income credit (refundable): [9] Number 378,916 378,916 0 0 0 0
Amount 734,461 734,461 0 0 0 0
Alternative minimum tax: Number 51,028 594 1,515 1,781 10,507 36,631
Amount 274,655 2,313 2,308 3,362 24,737 241,934
Income tax: [10] Number 1,756,630 935,570 328,624 201,736 218,015 72,685
Amount 17,982,915 1,650,776 1,695,900 1,638,136 3,716,962 9,281,140
Total tax liability: [11] Number 1,883,758 1,054,272 335,316 203,031 218,405 72,734
Amount 18,857,253 1,937,739 1,817,947 1,739,635 3,900,608 9,461,325
Tax due at time of filing: [12] Number 536,617 249,896 95,440 61,000 90,879 39,402
Amount 2,534,009 242,592 195,593 172,461 467,315 1,456,049
Overpayments: [13] Number 1,974,466 1,448,055 249,605 137,887 117,066 21,853
Amount 4,643,973 2,613,707 682,461 454,630 521,043 372,131
** - Not shown to avoid disclosure of information about specific taxpayers. However, the data are
combined with data in an adjacent size class, as appropriate, and included in the appropriate totals.
[1] Includes returns with adjusted gross deficit.
[2] U.S. totals in Table 2 do not agree with Tables 1 and 3 because Table 2 also includes (a)
"substitutes for returns," whereby the Internal Revenue Service constructs returns for certain
nonfilers on the basis of available information and imposes an income tax on the resulting estimate
of the tax base, i.e., "taxable income," and (b) returns of nonresident or departing aliens. In
addition, for Table 2: "Income tax" includes the "alternative minimum tax," but differs from "total
income tax" in Tables 1 and 3 in that it is after subtraction of all tax credits except a portion of the
"earned income credit." See, also, footnote 7, below, for an explanation of the treatment of the
earned income credit, and Table 1, footnotes 31, 34, and 37.
[3] Less deficit.
[4] "Number," here, and elsewhere in Table 2, represents number of returns, unless otherwise
specified.
[5] Includes the Alaskan permanent fund, reported by residents of Alaska on Forms 1040A and
1040EZ's. This fund only applies to statistics in the U.S. totals, and the state of Alaska.
[6] "Itemized deductions" include any amounts reported by the taxpayer, even if they could not be
used in computing "taxable income," the base on which the regular income tax was computed.
Thus, total itemized deductions include amounts that did not have to be reported by taxpayers
with no "adjusted gross income." (Adjusted gross income is the total from which these deductions
would normally be subtracted.) In addition, if standard and itemized deductions were both
reported on a tax return, the form of deduction actually used in computing income tax was the one
used for the statistics. Therefore, if the standard deduction was the form of deduction used, the
total reported for itemized deductions was excluded from the statistics. However, the component
deductions were not similarly excluded. As a result, the number of returns and related amounts for
the component deductions are slightly overstated in relation to the grand total shown for itemized
deductions. These components are also overstated in relation to the total because there was a
statutory limitation on the total of itemized deductions that could be claimed by certain high-
income taxpayers.
This limitation did not affect the component deductions, the sum of which therefore exceeded the
total used in computing income tax. See also, Table 1, footnote 22.
[7] Unlike Table 1, "total tax credits" exclude the "earned income credit", shown separately below,
in Table 2.
[8] "Earned income credit" includes both the refundable and non-refundable portions. The
non-refundable portion could reduce income tax and certain related taxes to zero; credit
amounts in excess of tax, or amounts when there was no tax liability at all, were refundable.
See footnote 10, below.
[9] The refundable portion of the "earned income credit" equals the amount in excess of "total tax
liability," which is shown below in Table 2 and defined in footnote 10. The excess credit shown
includes any "advance earned income credit payments" for those returns that had such an excess.
See also footnote 7, above.
[10] See footnote 2, above.
[11] "Total tax liability" differs from "income tax," shown above in Table 2, in that it includes the
taxes from recapture of certain prior-year credits, tax applicable to Individual Retirement
Arrangements (IRA's), Social Security taxes on self-employment income and on certain tip income,
and certain other income-related taxes. See also footnote 7, above, for an explanation of the
treatment of the earned income credit.
[12] Reflects payments of the taxes listed in footnote 10, above.
[13] See Table 1, footnote 40.
[14] Includes, for example, returns filed from Army Post Office and Fleet Post Office addresses by
members of the armed forces stationed overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from sources outside Puerto Rico or with
income earned as U.S. government employees.
NOTE: This table presents aggregates of all returns filed and processed through the Individual
Master File (IMF) system during Calendar Year 2007, including any returns filed for tax years
preceding 2006.
In general, during administrative or Master File processing, taxpayer reporting discrepancies are
corrected only to the extent necessary to verify the income tax liability reported. Most of the
other corrections to the taxpayer records used for these statistics could not be made because of
time and resource constraints. The statistics in Table 2 should, therefore, be used with the
knowledge that some of the data have not been perfected or edited for statistical purposes and
that U.S. totals in this table may not be altogether comparable to U.S. totals in Tables 1 and 3, as
a result. Also, see footnote 2, above for differences in tax return coverage, which affects U.S.
totals in this table.
Classification by State was usually based on the taxpayer's home address. However, some
taxpayers may have used the address of a tax lawyer, or accountant, or the address of a place of
business; moreover, such addresses could each have been located in a State other than the State
in which the taxpayer resided.
For explanation of the tax law changes which could affect the year-to-year analysis of data, refer
to the respective years' "Individual Income Tax Returns, Preliminary Data" article published in the
SOI Winter Bulletin. For further explanation of the tax terms, refer to the "Individual Income Tax
Returns," Publication 1304.
SOURCE: IRS, Statistics of Income Division, Individual Master File System, January 2008.