10 Astonishing Truths About Your Taxes
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Transcript of 10 Astonishing Truths About Your Taxes
10 Astonishing Truths About Your TaxesInteresting Facts About Our Tax System
Returns Received by The IRS
• The IRS collects over $2.4 trillion in taxes each year.
• Over 140 million individual income tax returns are filed each year.
• The IRS receives over 31 million business tax returns each year.
The Average Tax Refund
• Over 111 million taxpayers receive a tax refund.
• The average tax refund is almost $3,000.
• In all, the IRS sends out $314 billion in tax refunds.
E-filing
• E-filing is now nearly universal.
• Over 90% of individual tax returns are e-filed.
• To use the IRS’ free file service, your income must be less than $60,000 per year.
Top 1% of Earners
• According to IRS data, the adjusted gross income of the top 1% of earners is $434,682 or more per year.
• The adjusted gross income of the top 10% is $125,195 or more.
• The median adjusted gross income is $36,005.
The Millionaire State
• In 2012, almost 400,000 tax returns showed an adjusted gross income of $1 million or more.
• California is the state with the most millionaires.
• Roughly 58,000 Californians reported over $1 million in income in 2012.
• Vermont has the least amount of millionaires, only 470.
The Standard Deduction
• 67.1% of taxpayers choose to take the standard deduction rather than itemize their deductions.
• For tax year 2014, the standard deduction is $6,200 for single taxpayers, $12,400 for married couples filing jointly, and $9,100 for heads of household.
Earned Income Tax Credit
• The Earned Income Tax Credit is a refundable tax credit for low to middle income taxpayers.
• 27.8 million taxpayers used the Earned Income Tax Credit in 2012.
• In total, those taxpayers claimed $64.1 billion with the credit.
Tax Professionals
• Many taxpayers choose to hire a professional to prepare their tax returns rather than prepare their own.
• More than half of individual taxpayers use a paid preparer to file their taxes.
Our Tax Code
• The U.S. Tax Code is long and notoriously complicated.
• There are about 4 million words in the Tax Code.
• And it’s always changing. Since 2001, there have been more than 5,000 changes to the Tax Code.