Individual Income Tax Returns, by State, 2007
Individual Income Tax Returns, by State, 2007
by Taquesha Cain
T he Economic Stimulus Act of 2008, which was signed into law on February 13, 2008, provided several individual and businesses tax benefits designed to boost the economy. One of the provisions of this act provided an economic stimulus payment to individuals who had qualifying income of at least $3,000 or a net income tax liability. Individuals received a stimulus payment based on their Tax Year 2007 returns, so many individuals filed tax returns even though they were not otherwise required to file. In total, there were 154.7 million individual tax returns filed for Tax Year 2007.1 Of those, an estimated 12.5 million individual income tax returns were filed solely to receive a stimulus payment.
The Statistics of Income (SOI) annually publishes "Historical Table 2," showing individual income and tax data by State and size of adjusted gross income (AGI). These data are extracted from the population of returns filed for a given tax year, and are collected as returns are processed by the Internal Revenue Service for administrative purposes. The Tax Year 2007 Historical Table 2 published in the spring 2009 issue of the SOI Bulletin included returns filed just to receive the economic stimulus payment. This makes comparisons to previous and later years' data very difficult. To ensure a consistent time series, SOI developed a State-level data file from an expanded statistical sample of returns filed for Tax Year 2007, which allows it to produce State-level estimates that exclude returns filed just to receive an economic stimulus payment (see Data Sources and Limitations section for details on this sample). This article presents data from this file (Table 1).
Excluding the additional tax returns filed solely for the economic stimulus payment, individual taxpayers filed approximately 142.2 million individual income tax returns for Tax Year 2007. The AGI re-
Taquesha Cain is an economist with the Individual Research Section. This article was prepared under the direction of Michael Strudler, Chief.
ported on these returns totaled slightly less than $8.7 trillion. In this article, selected sources of income, deductions, and tax components are reviewed at the State level. These include salaries and wages, net capital gain in AGI, business or profession net income, AGI, total itemized deductions, the alternative minimum tax (AMT), and income tax.
Selected Sources of Income
Salaries and wages, as reported on the individual tax return, are amounts of compensation primarily for personal services.2 This category includes items such as: salaries, wages, commissions, bonuses, tips, etc. Figure A shows the top 10 States with the highest average salaries and wages reported for Tax Year 2007. The average salaries and wages per individual tax return for the United States as a whole was $48,558, as reported on about 120.9 million returns. The highest average salaries and wages was reported in the category labeled "Other Areas," $95,650, although this group represented only 0.7 percent of the total salaries and wages reported for Tax Year 2007. Other Areas, which will be treated as a separate "State" throughout this analysis, includes returns filed by U.S. citizens living abroad, members of armed forces stationed overseas, and residents of Puerto Rico with income from sources outside Puerto Rico or with income earned as U.S. government employees. About 60 percent of these returns are from U.S. citizens living abroad, and these returns report appreciably higher salaries, other income, and taxes compared to the other areas included in this category. The two States with the next highest average salaries and wages were Connecticut, at $70,362, and New Jersey, at $64,651. Connecticut, with the second highest average salaries and wages, represented 1.8 percent of the total, while New Jersey represented 4.0 percent. The State that represented the largest percentage of total salaries and wages was California, with 12.9 percent of the total and average salaries and wages of $54,440, the eighth highest.
1 Historical Table 2 , Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2007: Statistics of Income Bulletin, Spring 2009, Volume 28, Number 4, p. 132?185. 2 For further details on the definitions for data variables used in this text, see Statistics of Income--2007, Individual Income Tax Returns (IRS Publication 1304).
174
Individual Income Tax Returns, by State, 2007
Statistics of Income Bulletin | Spring 2011
Figure A
Salaries and Wages and Average Salaries and Wages, by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Total number of returns [1]
Number of returns Percentage with salaries and of returns having wages of returns salaries and wages
Salaries and wages
Average salaries and wages
Percentage of U.S. total salaries and
wages
(1)
(2)
(3)
(4)
(5)
(6)
All states Other areas [2,3] Connecticut New Jersey Massachusetts District of Columbia New York Maryland California Virginia New Hampshire
142,169,394 589,696
1,743,516 4,300,569 3,208,489
303,860 9,177,173 2,788,595 16,530,898 3,756,005
674,150
120,934,764 443,632
1,463,904 3,642,593 2,737,566
257,107 7,635,159 2,402,908 13,869,710 3,282,208
582,794
85.1 5,872,400,587
75.2
42,433,560
84.0
103,003,155
84.7
235,498,240
85.3
163,477,502
84.6
15,261,128
83.2
441,714,203
86.2
138,182,308
83.9
755,069,646
87.4
175,484,642
86.4
30,196,618
48,558 95,650 70,362 64,651 59,716 59,357 57,853 57,506 54,440 53,465 51,814
100.0 0.7 1.8 4.0 2.8 0.3 7.5 2.4
12.9 3.0 0.5
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment.
[2] Includes 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.
[3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average salaries and wages (Column 5).
Business or profession net income or loss is a source of income or loss reported by individuals who are sole proprietors of a nonfarm business, including self-employed members of a profession. The top 10 States with the highest average business or profession net incomes are shown in Figure B. The average business or profession net income was $12,326, reported on nearly 22.9 million returns. The top three States with the highest average business or profession net income were the following: Other Areas, at $26,591, Connecticut, at $22,527, and the District of Columbia, at $19,443. Other Areas ranked highest in average business or profession net income but only represented 0.4 percent of the nation's total. Just as with salaries and wages, California represented the largest percentage, of all business or profession net income, 16.9 percent. California had more than 3 million returns that reported sole proprietorship net income or losses, and the average net income on these returns was $15,692.
Capital gain or loss is the combination of net short-term and long-term gain or loss from sales of capital assets. The net loss allowed to be included in AGI is limited to $3,000 ($1,500 for married filing separate filers). Figure C shows the top 10 States with the highest average net capital gain (less loss).
For Tax Year 2007, net capital gain (less loss) was reported on approximately 18.7 percent (26.6 million) of all returns, and the average capital gain reported on those returns was $33,624. The top three States with the highest average net capital gain (less loss) were the following: Wyoming, at $85,967, Nevada, at $74,048, and the District of Columbia, at $63,348. However, each of these States represented a small percentage of total capital gains (less loss) reported for 2007 (Wyoming represented 0.5 percent, Nevada represented 1.5 percent, and the District of Columbia represented just 0.4 percent). Once again, California reported the largest share of the U.S. total, 14.8 percent, followed by New York, with 12.7 percent. Of the top 10 States with the highest average capital gain, the State with the highest percentage of returns reporting this source of income was Connecticut, with 25.8 percent of all returns filed by Connecticut residents, followed by Other Areas, at 24.4 percent, and Massachusetts, at 23.5 percent.
Adjusted gross income is gross income less all adjustments, such as payments to Individual Retirement Arrangements (IRAs), alimony paid, certain student loan interest, and Figure D shows the top 10 States with the highest average AGI. The average AGI for the nation was $61,089. Connecticut had the
175
Individual Income Tax Returns, by State, 2007
Statistics of Income Bulletin | Spring 2011
Figure B
Business or Profession Net Income and Average Business or Profession Net Income, by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Total number of returns [1]
Number of returns with business or profession net
income
Percentage of returns having
business or profession net
income
Business or profession net
income
Average business or profession net
income
Percentage of U.S. total business or profession net income
(1)
(2)
(3)
(4)
(5)
(6)
All states Other areas [2,3] Connecticut District of Columbia New Jersey Massachusetts New Hampshire California Washington New York Alaska
142,169,394 589,696
1,743,516 303,860
4,300,569 3,208,489
674,150 16,530,898
3,170,643 9,177,173
363,641
22,856,073 42,078
266,052 45,467
599,735 494,378 109,644 3,027,536 449,452 1,538,764
59,224
16.1
281,724,509
7.1
1,118,880
15.3
5,993,254
15.0
884,006
13.9
11,027,051
15.4
9,013,498
16.3
1,958,336
18.3
47,507,517
14.2
6,853,535
16.8
22,950,760
16.3
874,995
12,326 26,591 22,527 19,443 18,387 18,232 17,861 15,692 15,249 14,915 14,774
100.0 0.4 2.1 0.3 3.9 3.2 0.7
16.9 2.4 8.1 0.3
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment.
[2] Includes 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.
[3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average salaries and wages (Column 5).
Figure C
Capital Gain (Less Loss) and Average Capital Gain (Less Loss), by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Total number of returns [1]
Number of returns with net capital gain
(less loss)
Percentage of returns having net capital gain
(less loss)
Net capital gain (less loss)
Average capital gain (less loss)
Percentage of U.S. total capital gain (less loss)
All states Wyoming Nevada District of Columbia New York Other areas [2,3] Connecticut Florida Washington California Massachusetts
(1)
142,169,394 268,496
1,280,294 303,860
9,177,173 589,696
1,743,516 8,936,343 3,170,643 16,530,898 3,208,489
(2)
26,639,942 54,897
183,371 61,535
1,900,690 143,756 450,637
1,598,982 690,022
3,129,593 755,415
(3)
18.7 20.4 14.3 20.3 20.7 24.4 25.8 17.9 21.8 18.9 23.5
(4)
895,749,568 4,719,306
13,578,178 3,898,115
114,080,836 7,764,560
24,170,426 82,156,576 30,679,416 132,136,417 31,229,510
(5)
33,624 85,967 74,048 63,348 60,021 54,012 53,636 51,381 44,462 42,222 41,341
(6)
100.0 0.5 1.5 0.4
12.7 0.9 2.7 9.2 3.4
14.8 3.5
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment.
[2] Includes 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.
[3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average salaries and wages (Column 5).
176
Individual Income Tax Returns, by State, 2007
Statistics of Income Bulletin | Spring 2011
Figure D
Adjusted Gross Income and Average Adjusted Gross Income, by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Number of
returns [1]
Percentage of returns
Adjusted gross income
Average adjusted gross income
Percentage of U.S. total adjusted gross
income
(1)
(2)
(3)
(4)
(5)
All states Connecticut Other areas [2,3] District of Columbia New York Massachusetts New Jersey Wyoming Maryland California Washington
142,169,394 1,743,516 589,695 303,860 9,177,173 3,208,489 4,300,569 268,496 2,788,595
16,530,898 3,170,643
100.0 1.2 0.4 0.2 6.5 2.3 3.0 0.2 2.0
11.6 2.2
8,685,052,796 167,238,015 51,790,832 24,822,445 713,879,723 249,055,678 333,318,778 20,495,860 195,978,693
1,132,597,606 216,702,912
61,089 95,920 87,826 81,690 77,789 77,624 77,506 76,336 70,279 68,514 68,347
100.0 1.9 0.6 0.3 8.2 2.9 3.8 0.2 2.3
13.0 2.5
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment. [2] Includes 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. [3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average adjusted gross income (Column 4).
highest average AGI, at $95,920, followed by Other Areas, at $87,826, and the District of Columbia, at $81,690. For Tax Year 2007, AGI reported by the top 10 States with the highest averages represented about 35.8 percentage of total U.S. AGI, with California having the largest percentage, 13.0 percent.
Total Itemized Deductions
Figure E shows the top 10 States with the highest average total itemized deductions for Tax Year 2007. Together, the top 10 States with the highest average itemized deductions represented 40.4 percent of total itemized deductions. Average itemized deductions for the whole U.S. were $26,464 and were reported on just over 50 million returns. The top five States with the highest average total itemized deductions were: California, at $36,440, the District of Columbia, at $33,958, New York, at $33,435, Other Areas, at $32,098, and Connecticut, at $31,395. California, with the highest average itemized deductions, also represented the largest percentage of total U.S. itemized deductions, 17.4 percent of the total amount reported. New York followed with 8.8 percent of the U.S. total. The percentage of returns reporting
itemized deductions for the United States was 35.2 percent. In contrast, almost 50 percent of Maryland filers reported itemized deductions, the highest share among any State in the top 10. Maryland's average itemized deductions placed it ninth in the overall ranking.
The Alternative Minimum Tax and Income Tax
Figure F displays the top 10 States with the highest average alternative minimum tax (AMT) for Tax Year 2007. The average AMT for the United States was $5,895, and AMT was reported on about 2.9 percent (4.1 million) of all returns. The average AMT for the top 10 States ranged from $6,079 to $7,940. The top three States with the highest average AMT were Other Areas, at $7,940, Wyoming, at $7,587, and California, at $7,446. California represented the largest percentage, 22.9 percent, of the nation's total AMT, while Other Areas and Wyoming only represented 0.5 and 0.1 percent of total AMT, respectively. The top 10 States with the highest average AMT paid approximately 44.4 percent of the total, with just the top two States, California and New York, paying 37.7 percent. Of these top 10 States, the two States
177
Individual Income Tax Returns, by State, 2007
Statistics of Income Bulletin | Spring 2011
Figure E
Itemized Deductions and Average Itemized Deductions, by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Total number of returns [1]
Number of returns with itemized deductions
Percentage of returns having
itemized deductions
Itemized deductions
Average itemized deductions
Percentage of U.S. total itemized deductions
(1)
(2)
(3)
(4)
(5)
(6)
All states California District of Columbia New York Other areas [2,3] Connecticut New Jersey Nevada New Hampshire Maryland Massachusetts
142,169,394 16,530,898 303,860 9,177,173 589,696 1,743,516 4,300,569 1,280,294 674,150 2,788,595 3,208,489
50,085,995 6,323,771 125,945 3,487,979 76,049 781,088 1,929,824 478,660 246,714 1,386,890 1,320,898
35.2 1,325,484,755
38.3
230,440,950
41.4
4,276,846
38.0
116,621,852
12.9
2,440,994
44.8
24,522,011
44.9
58,473,057
37.4
14,265,520
36.6
7,223,523
49.7
39,936,413
41.2
37,405,806
26,464 36,440 33,958 33,435 32,098 31,395 30,300 29,803 29,279 28,796 28,318
100.0 17.4 0.3 8.8 0.2 1.9 4.4 1.1 0.5 3.0 2.8
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment.
[2] Includes 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.
[3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average itemized deductions (Column 5).
Figure F
Alternative Minimum Tax and Average Alternative Minimum Tax, by Selected State, Tax Year 2007
[All figures are estimates based on a sample--money amounts are in thousands of dollars, average amounts are in whole dollars]
State
Total number of returns [1]
Number of returns paying
alternative minimum tax
Percentage of returns paying
alternative minimum tax
Alternative minimum tax
Average alternative minimum tax
Percentage of U.S. total alternative minimum tax
All states Other areas [2,3] Wyoming California District of Columbia New York Florida Nevada Vermont Maine Montana
(1)
142,169,394 589,696 268,496
16,530,898 303,860
9,177,173 8,936,343 1,280,294
318,602 648,047 470,100
(2)
4,103,044 15,840 3,851
743,498 16,291
500,378 164,797
18,020 8,794
14,708 8,601
(3)
2.9 2.7 1.4 4.5 5.4 5.5 1.8 1.4 2.8 2.3 1.8
(4)
24,187,662 125,773 29,216
5,535,892 118,933
3,576,407 1,050,866
114,203 54,929 90,450 52,284
(5)
5,895 7,940 7,587 7,446 7,301 7,147 6,377 6,338 6,246 6,150 6,079
(6)
100.0 0.5 0.1
22.9 0.5
14.8 4.3 0.5 0.2 0.4 0.2
[1] Total number of returns does not include returns filed by individuals who had no other reason to file except to receive the economic stimulus payment.
[2] Includes 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.
[3] These data are based on the address listed on the Form 1040. This differs from the data in Historical Table 2 published in the spring 2009 issue of the Statistics of Income Bulletin, in which the State is based on the universal location code, a code used for IRS administrative processing. NOTE: The 10 States shown in this figure have the largest average alternative minimum tax (Column 5).
178
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- 2017 state of the denver post
- occupational employment and wages — may 2019
- state of california
- 2016 schools survey slp annual salaries and hourly wages
- rankings and estimates report 2018
- current average state allocation minimum salary allocation
- 2019 state of salaries report
- average co op salaries and employer co op salary
- average faculty salaries by rank and gender total
- individual income tax returns by state 2007
Related searches
- michigan individual income tax return
- michigan individual income tax instructions
- 2019 michigan individual income tax form
- state individual income tax rates
- 2019 individual income tax bracket
- income tax returns forms download
- state income tax rates by state
- arizona individual income tax rates 2020
- az individual income tax rates
- 1040 us individual income tax return 2020
- colorado individual income tax rates 2020
- 1040 us individual income tax return form