A few months ago we published a map showing the percentage of filers in each state earning over $200,000. We used the $200,000 figure because of the way the IRS publishes income taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. data by state – they don’t subdivide their tax data further – and it was the closest figure to President Obama’s proposal to let the Bush tax cuts expire for families making over $250K.
The Fiscal Cliff compromise that passed a few days ago uses a higher threshold for most of the expired tax cuts – $400,000 (for single filers) and $450,000 (for joint filers.) The nearest threshold it’s possible to do a map of IRS data with is $500,000, so below, by state, is a map showing the percentage of tax returns with adjusted gross income (AGI)Adjusted gross income (AGI) is a taxpayer’s total income minus certain “above-the-line” deductions. It is a broad measure that includes income from wages, salaries, interest, dividends, retirement income, Social Security benefits, capital gains, business, and other sources, and subtracts specific deductions. over $500,000.
Click on the map to enlarge it.
View previous Monday maps here.
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