Sheet1

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Sheet1
Table 2.--Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2005

[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)

UNITED STATES [2]

135,257,620

Number of returns................................................................................................................. 92,150,166 18,221,115 10,499,106 10,797,979 3,589,254

52,607,676

Number of joint returns.......................................................................................................... 20,743,943 11,329,459 8,296,546 9,193,700 3,044,028

80,455,243 53,622,647

Number with paid preparer's signature.......................................................................................................... 11,025,624 6,260,725 6,678,965 2,867,282

273,738,434

Number of exemptions................................................................................................................. 159,649,737 44,189,517 28,555,195 30,919,226 10,424,759

7,364,640,131 1,797,097,083

Adjusted gross income (AGI) [3]................................................................................................................. 1,119,634,632 905,336,768 1,429,575,727 2,112,995,921

114,060,887 75,422,766

Salaries and wages in AGI: [4] Number.......................................................................................................... 16,299,827 9,520,214 9,782,173 3,035,907

Amount.......................................................................................................... 5,161,583,318 1,541,276,272 896,339,313 721,137,490 1,083,175,205 919,655,038

59,553,985

Taxable interest: Number.......................................................................................................... 28,527,550 10,891,905 7,636,612 9,092,673 3,405,245

Amount.......................................................................................................... 161,324,824 39,043,002 16,353,293 12,852,148 23,160,862 69,915,518

31,158,675

Ordinary dividends: Number .......................................................................................................... 13,174,923 5,255,958 4,095,938 5,824,522 2,807,334

Amount.......................................................................................................... 164,247,298 23,867,893 12,810,282 11,524,298 25,842,394 90,202,431

Business or profession net income (less loss): Number............................... 21,287,828 12,841,522 3,099,068 1,982,558 2,362,469 1,002,211

Amount.......................................................................................................... 269,594,942 70,751,702 30,752,849 25,814,162 58,597,781 83,678,447

2,007,552

Number of farm returns.......................................................................................................... 1,105,788 368,279 218,852 210,878 103,755

26,123,830 10,714,035

Net capital gain (less loss) in AGI: Number.......................................................................................................... 4,175,385 3,315,647 5,111,206 2,807,557

Amount.......................................................................................................... 625,705,521 22,111,031 13,874,190 16,600,952 57,479,241 515,640,106

Taxable individual retirement arrangements distributions: Number............... 9,501,670 5,168,496 1,718,555 1,091,316 1,145,439 377,864

Amount.......................................................................................................... 114,518,476 32,646,698 19,695,100 17,300,443 27,601,237 17,274,999

23,183,796 13,183,470

Pensions and annuities in AGI: Number.......................................................................................................... 4,130,881 2,546,813 2,593,989 728,643

Amount.......................................................................................................... 417,390,451 154,529,012 86,171,762 64,508,401 83,027,976 29,153,300

7,888,487 5,545,246

Unemployment compensation: [5] Number.......................................................................................................... 1,247,063 601,675 431,726 62,777

Amount.......................................................................................................... 27,914,348 18,598,544 4,708,023 2,378,434 1,898,762 330,586

12,475,908 5,800,920

Social Security benefits in AGI: Number.......................................................................................................... 2,924,496 1,616,480 1,537,695 596,317

Amount.......................................................................................................... 123,703,685 26,030,227 35,897,354 24,813,492 25,769,594 11,193,017

1,235,620 191,402

Self-employment retirement plans: Number.......................................................................................................... 139,548 146,210 371,863 386,597

Amount.......................................................................................................... 20,613,969 1,074,583 1,123,405 1,432,591 5,540,636 11,442,753

48,163,827 16,515,819

Total itemized deductions: [6] Number................................................................................................................. 10,623,941 8,008,129 9,665,729 3,350,209

Amount.......................................................................................................... 1,136,072,269 254,843,243 188,352,920 164,837,239 265,249,292 262,789,573

35,261,300 9,920,575

State and local income taxes: Number.......................................................................................................... 8,183,065 6,443,331 7,930,183 2,784,146

Amount.......................................................................................................... 230,091,694 16,582,458 24,343,157 28,312,484 54,925,404 105,928,191

11,168,217 5,458,168

State and local general sales tax: Number.......................................................................................................... 2,175,050 1,406,728 1,588,039 540,232

Amount.......................................................................................................... 17,627,381 5,154,972 3,527,443 2,801,026 3,939,505 2,204,435

41,496,005

Real estate taxes: Number.......................................................................................................... 12,593,630 9,317,580 7,348,470 9,069,442 3,166,883

Amount.......................................................................................................... 145,630,380 29,910,972 24,529,199 22,949,219 39,141,378 29,099,612

47,940,060

Taxes paid: Number.......................................................................................................... 16,283,494 10,622,206 8,012,237 9,668,090 3,354,033

Amount.......................................................................................................... 420,378,159 63,626,608 55,454,727 57,667,758 102,954,628 140,674,438

39,313,705

Mortgage Interest paid: Number.......................................................................................................... 11,836,987 9,012,090 7,074,984 8,545,657 2,843,987

Amount.......................................................................................................... 413,968,571 96,772,262 77,753,026 67,206,697 101,847,592 70,388,994

41,394,670

Contributions: Number.......................................................................................................... 12,431,392 9,314,005 7,320,081 9,114,226 3,214,966

Amount.......................................................................................................... 181,643,798 24,934,354 23,375,359 21,474,927 36,942,959 74,916,197

104,618,964

Taxable income: Number................................................................................................................. 61,696,034 18,097,134 10,467,571 10,775,942 3,582,283

Amount.......................................................................................................... 5,102,016,780 845,878,263 725,984,014 627,074,261 1,057,281,914 1,845,798,328

40,532,350

Total tax credits: [7] Number................................................................................................................. 21,853,891 7,714,225 5,098,485 4,411,820 1,453,929

Amount.......................................................................................................... 54,074,423 17,133,349 12,712,292 8,883,815 5,691,483 9,653,482

25,961,450

Child tax credit: Number.......................................................................................................... 13,052,640 6,154,981 3,931,899 2,820,540 1,390

Amount.......................................................................................................... 31,896,930 11,194,359 10,014,543 6,747,638 3,939,075 1,315

6,387,487

Child care credit: Number.......................................................................................................... 2,598,726 1,394,275 1,031,504 1,122,449 240,533

Amount.......................................................................................................... 3,360,313 1,385,540 715,116 543,040 588,080 128,537

22,747,631

Earned income credit: [8] Number.................................................................................................................22,747,631 0 0 0 0

Amount.......................................................................................................... 42,636,473 42,636,473 0 0 0 0

Excess earned income credit (refundable): [9] Number................................ 19,976,612 19,976,612 0 0 0 0

Amount.......................................................................................................... 37,637,507 37,637,507 0 0 0 0

4,067,599

Alternative minimum tax: Number................................................................................................................. 71,712 121,078 192,041 1,481,073 2,201,695

Amount.......................................................................................................... 17,269,976 184,961 146,147 270,330 2,742,842 13,925,696

92,646,159

Income tax: [10] Number................................................................................................................. 50,596,829 17,341,394 10,368,748 10,757,520 3,581,668

Amount.......................................................................................................... 938,184,168 88,375,052 92,532,758 87,117,677 190,475,859 479,682,823

100,222,174

Total tax liability: [11] Number................................................................................................................. 57,868,419 17,587,865 10,410,537 10,771,544 3,583,809

Amount.......................................................................................................... 989,191,350 105,786,470 99,360,874 92,573,567 200,393,602 491,076,838

25,495,750 12,612,333

Tax due at time of filing: [12] Number................................................................................................................. 4,249,962 2,643,935 4,014,472 1,975,048

Amount.......................................................................................................... 117,979,278 12,413,009 8,724,802 7,544,529 20,657,387 68,639,552

102,297,909

Overpayments: [13] Number................................................................................................................. 74,147,484 13,466,925 7,498,704 6,184,721 1,000,075

Amount.......................................................................................................... 235,357,330 130,883,069 36,846,281 25,452,383 26,730,572 15,445,026

** - 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 2006, including any returns filed for tax years preceding 2005.





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 2007.


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