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.