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IRS Releases Winter 2008 Statistics
IRS Issues Winter 2008 Statistics of Income Bulletin
WASHINGTON — The Internal Revenue Service today released the winter 2008 issue of the Statistics of Income Bulletin, featuring data from 134.4 million individual income tax returns filed for tax year 2005. Of those returns, 90.6 million were “taxable.” This means that they reported total income tax greater than zero. The number of taxable returns in tax year 2005 was up 1.7 percent from 2004.
Adjusted gross income on these 90.6 million returns totaled $6.857 trillion, an increase of 9.4 percent from 2004. Total income tax on these returns totaled $935 billion, up 12.4 percent from 2004. (Adjusted gross income is total income, as defined by the tax code, less statutory adjustments, which are primarily business, investment and certain other deductions.)
The average tax rate for taxable returns was 13.6 percent in tax year 2005, which was up 0.4 percentage points from 2004.
Taxpayers in the top 1 percent of adjusted gross income reported adjusted gross income of at least $364,657 in tax year 2005. This group accounted for 21.2 percent of all adjusted gross income reported, which was up 2.2 percent from the prior year. This group also accounted for 39.4 percent of total income tax reported, which was up 2.5 percent from 2004.
Taxpayers in the top 5 percent of adjusted gross income reported adjusted gross income of at least $145,283. This group accounted for 35.7 percent of all adjusted gross income reported and 59.7 percent of total income tax.
This edition of the quarterly Bulletin includes articles about the following:
- The filing patterns of split-interest trusts were relatively stable between 2005 and 2006.
- Charitable and other types of tax-exempt organizations reported unrelated business taxable income that totaled $1.3 billion in tax year 2004, up 65 percent from 2003. These organizations reported $364.6 million in unrelated business income tax, an increase of 66 percent since 2003.
- The finances of charitable and other tax-exempt organizations have grown substantially in the 20 years from 1985 to 2004. For example, the aggregate book value of reported assets for public charities and private foundations totaled $2.5 trillion for tax year 2004, an increase of 222 percent over the 20-year period.
- Another article explores patterns in individual income taxes since the modern income tax was introduced in 1913.
The Statistics of Income Bulletin is available from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate is $53 ($74.20 foreign), single issues cost $39 ($48.75 foreign).
For more information about these data, write the Director, Statistics of Income (SOI) Division, RAS:S, Internal Revenue Service, P.O. Box 2608, Washington, DC 20013-2608; call SOI’s Statistical Information Services at (202) 874-0410; or fax, (202) 874-0964. To access an electronic version of the winter 2008 issue of the Bulletin, from the “SOI Bulletins” page described above, select “Winter 2008.”
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March Madness for Stimulus Letters
Special Economic Stimulus Letters Reach Mailboxes in March
WASHINGTON — More than 130 million American households will begin receiving Internal Revenue Service letters next week reminding them to file a 2007 tax return in order to receive a 2008 economic stimulus payment.
The mailings by the IRS will begin the first week in March and continue throughout the month. The informational notice, titled Economic Stimulus Payment Notice, alerts people that they may be eligible for a one-time stimulus payment of up to $600 ($1,200 married filing jointly) starting in May. There also is a $300 per child payment for qualifying children younger than 17.
“This special letters remind people that they won’t need to do anything more than file a 2007 tax return in order to put the stimulus payment process in motion,” Acting IRS Commissioner Linda Stiff said.
The notice is informational and does not seek any financial information. The main mailings, which will take place in three weekly batches, will go to taxpayers who filed a tax return last year.
“To receive a payment in 2008, individuals who qualify will not have to do anything more than file a 2007 tax return. The IRS will determine eligibility, figure the amount and send the payment,” the notice states. “This payment should not be confused with any 2007 income tax refund that is owed to you by the federal government. Income tax refunds for 2007 will be made separately from this one-time payment.”
However, some people must take an extra step this year to receive a stimulus payment. In late March, the IRS will send a special mailing to certain recipients of Social Security and Veterans Affairs benefits. Generally, those benefits are nontaxable and recipients do not file tax returns. In order to receive a stimulus payment, people in this group need to file a tax return if they have at least $3,000 from a combination of certain Social Security benefits, Veterans benefits and earned income. The minimum stimulus payment for these people is $300 ($600 for married filing jointly).
The IRS has created a sample of Form 1040A with information on how to fill out a few lines that will enable eligible people who do not normally file a tax return to receive the stimulus payment.
More details on the special mailings for recipients of Social Security and veterans benefits will be available soon.
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