The Good Old Days: IRS Reports 2007 Incomes Increased
IRS recently released a Statistics of Income report containing complete individual income tax data for the 2007 tax year (the latest year for which complete data are available). The figures show substantial increases in adjusted gross income (AGI), net capital gains less losses, and various forms of retirement income.
Income increases. From 2006 to 2007, the number of returns filed increased by 4.6 million, or 3.3%. The total income reported rose $656.9 billion, or 8.2%, and total tax liability increased 8.8% to $1.2 trillion. The number of returns reporting alternative minimum tax (AMT) rose 3.6% and the AMT amount rose 11.8%. Partnership and S corporation income went up 27.3%.
Several components of income showed large increases between 2006 and 2007, including the following items (percentages based on current, as opposed to constant, dollars):
... Capital gain: the number of returns reporting such distributions on Form 1040 rose 9%, and the amount reported rose 42.4%.
... IRA distributions: the number of returns reporting taxable distributions rose 7.2%, and the amount rose 18.6%.
... Pensions and annuities: the number of returns reporting taxable distributions rose 4.5%, and the amount rose 8.9%.
... Social security benefits: the number of returns reporting taxable benefits rose 9.2%, and the amount rose 15.8%.
You can access the report at:
About the Writer
Desmond G. Sheridan is a partner in the Greensboro law firm of Isaacson Isaacson Sheridan & Fountain, LLP and is a certified public accountant. His practice areas are business transactions, tax, corporations, limited liability companies, commercial real estate and estate planning. Sheridan has served on the Board of Directors of the North Carolina Association of Certified Public Accountants and has been recognized as a "Best Lawyer in America," a North Carolina "Super Lawyer" and a member of the "Legal Elite" by Business North Carolina. He has given numerous continuing education presentations to CPAs and attorneys.
