IRS Releases Statistics of Income for 2011

The Spring 2014 issue of the IRS's Statistics of Income Bulletin was released last week.
This issue presents some interesting information on high-income individual income tax returns for 2011.
This document is available for download at  IRS.gov/taxstats.
You will find some interesting articles at the above link. I especially enjoyed Individual Income Tax Rates and Shares, 2011 by Adrian Dungan and Michael Parisi, economists with the IRS. This article discusses the individual income tax rates and tax shares and the computation of “total income tax” for 2011 and provides some historical perspective by describing the income tax structure, relevant law changes and concepts of taxation. Here are some of the highlights:

• The top 1 percent of tax returns had adjusted gross income (AGI) of $388,905 and accounted for almost 19% of all individual income for 2011. 
• These taxpayers paid over 35% of the total individual income taxes paid.
• The cutoff for the top 5 percent was AGI of $167,728.

Do you know what your AGI is?

- Mark S Gleason CPA
  www.lakes-cpa.com