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548. Federal Individual Income Tax Returns With Adjusted Gross Income (AGI)--Summary

[Includes Puerto Rico and Virgin Islands. Includes returns of resident aliens, based on a sample of unaudited returns as filed. Data are not comparable for all years because of tax changes and other changes, as indicated. See Statistics of Income, Individual Income Tax Returns publications for a detailed explanation. See Appendix III]

 
Number of returns(1,000) Number of returns(1,000) Number of returns(1,000) AGI amount (mil.dol.) AGI amount (mil.dol.) AGI amount (mil.dol.) AGI amount (mil.dol.) Average amount (dollars) Average amount (dollars) Average amount (dollars) Average amount (dollars)
Item
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
 
     Total returns 93,902 95,396 95,337 96,321 99,439 101,660 103,045 106,996 109,708 112,136 113,717 114,730 113,605 114,602 115,943 118,218 120,351 122,422 1,613,731 1,772,604 1,852,135 1,942,590 2,157,738 2,305,951 2,481,681 2,773,824 3,083,020 3,256,358 3,405,427 3,464,534 3,629,130 3,723,340 3,907,518 4,189,354 4,535,974 4,969,950 17,185 18,582 19,427 20,168 21,699 22,683 24,083 25,925 28,102 29,039 29,947 30,197 31,945 32,489 33,702 35,438 37,690 40,597
 
Form 1040 57,123 57,576 59,465 61,211 64,533 67,006 68,910 71,032 71,359 71,563 69,270 68,993 65,871 66,358 66,391 64,775 66,265 68,782 1,310,088 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 22,935 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
Form 1040A 36,780 37,820 35,872 35,110 34,906 18,125 17,585 17,447 19,066 20,478 25,917 26,606 28,768 27,850 26,051 24,463 24,579 24,780 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 0 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
(NA) (NA) (NA) (NA) (NA) 16,529 16,551 18,517 19,283 20,094 18,530 19,131 18,965 20,393 20,508 21,644 21,196 21,155 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 4,770 4,215 2,993 7,103 8,311 7,705 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 8,755 11,296 12,505 14,091 11,903 14,724 18,954 24,288 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
 
 
45,243 (NA) (NA) (NA) (NA) 47,810 (NA) (NA) (NA) (NA) (NA) (NA) 48,021 48,389 48,389 49,036 48,826 49,166 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
1,699 (NA) (NA) (NA) (NA) 896 (NA) (NA) (NA) (NA) (NA) (NA) 2,458 2,481 2,481 2,628 2,546 2,621 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
7,691 (NA) (NA) (NA) (NA) 10,038 (NA) (NA) (NA) (NA) (NA) (NA) 14,451 15,108 15,108 15,551 16,555 16,855 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
126 (NA) (NA) (NA) (NA) 113 (NA) (NA) (NA) (NA) (NA) (NA) 93 91 91 115 102 61 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
39,143 (NA) (NA) (NA) (NA) 42,803 (NA) (NA) (NA) (NA) (NA) (NA) 48,582 49,874 49,874 50,887 52,323 53,719 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 14,935 14,877 14,278 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
 
93,902 95,396 95,337 96,321 99,439 101,660 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 118,218 120,351 122,422 (NA) 1,772,604 1,852,135 1,942,590 2,157,738 2,305,951 2,481,681 2,773,824 3,083,020 3,256,358 3,405,427 3,464,534 3,629,130 3,723,340 3,907,518 4,189,354 4,535,974 4,969,950 17,185 18,582 19,427 20,168 21,699 22,683 24,083 25,925 28,102 29,039 29,947 30,197 31,945 32,489 33,702 35,438 37,690 40,597
83,802 84,209 83,107 83,121 85,926 87,198 88,218 90,984 93,257 95,488 96,730 97,066 96,264 98,003 99,356 101,139 102,749 104,405 1,349,843 1,486,100 1,564,995 1,644,573 1,807,137 1,928,201 2,031,026 2,163,906 2,337,984 2,449,531 2,599,401 2,674,261 2,805,703 2,892,120 3,026,778 3,201,457 3,376,872 3,613,918 16,108 17,648 18,831 19,785 21,031 22,113 23,023 23,783 25,070 25,653 26,873 27,551 29,146 29,511 30,464 31,654 32,865 34,614
49,020 49,657 52,841 57,076 62,060 64,526 65,237 67,934 69,421 69,882 70,370 70,162 67,281 65,233 65,340 67,029 67,159 67,301 102,009 140,559 157,021 153,805 176,369 182,109 167,640 168,966 186,982 220,116 227,084 209,412 162,343 131,141 126,169 154,781 165,673 171,700 2,081 2,831 2,972 2,695 2,842 2,822 2,570 2,487 2,693 3,150 3,227 2,985 2,413 2,010 1,931 2,309 2,467 2,551
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 3,917 4,129 4,453 4,691 5,062 5,006 5,001 4,926 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 40,228 43,101 45,728 46,459 48,297 48,518 48,217 49,017 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 10,270 10,439 10,269 9,904 9,541 9,692 9,641 9,951
10,739 16,482 13,172 13,327 14,259 15,528 16,754 22,324 22,903 23,080 22,904 23,229 23,715 24,691 25,235 26,214 27,710 29,508 38,761 48,162 52,142 48,557 48,641 55,046 61,623 66,791 77,330 81,309 80,169 77,284 77,926 79,729 82,410 94,592 104,255 120,493 3,609 2,922 3,959 3,644 3,411 3,545 3,678 2,992 3,376 3,523 3,500 3,327 3,286 3,229 3,266 3,608 3,762 4,083
6,306 9,571 10,092 10,682 11,237 8,641 12,360 13,002 13,571 14,161 11,222 11,549 11,727 11,865 12,182 12,217 12,535 12,702 66,995 53,072 50,573 60,359 70,767 98,776 90,424 105,461 126,323 132,738 161,657 162,870 173,502 176,343 187,209 191,810 200,030 210,585 10,624 5,545 5,011 5,651 6,298 11,431 7,316 8,111 9,308 9,373 14,405 14,103 14,795 14,862 15,368 15,700 15,958 16,579
2,575 (NA) (NA) (NA) (NA) 3,260 (NA) (NA) (NA) (NA) 3,416 3,480 3,593 3,768 3,762 3,956 4,201 4,236 11,866 (NA) (NA) (NA) (NA) 20,003 (NA) (NA) (NA) (NA) 20,227 21,006 19,500 20,638 21,005 22,466 23,126 23,844 4,608 (NA) (NA) (NA) (NA) 6,136 (NA) (NA) (NA) (NA) 5,921 6,036 5,427 5,477 5,583 5,679 5,505 5,629
6,974 (NA) (NA) (NA) (NA) 9,992 (NA) (NA) (NA) (NA) 9,217 10,395 12,055 14,202 13,206 14,829 17,442 19,497 32,723 (NA) (NA) (NA) (NA) 72,183 (NA) (NA) (NA) (NA) 123,783 111,443 126,677 149,662 152,730 180,130 260,696 364,829 4,692 (NA) (NA) (NA) (NA) 7,224 (NA) (NA) (NA) (NA) 13,430 10,721 10,508 10,538 11,565 12,147 14,946 18,712
1,956 (NA) (NA) (NA) (NA) 2,667 (NA) (NA) (NA) (NA) 5,071 4,614 4,436 4,207 5,617 5,134 4,622 7,124 3,064 (NA) (NA) (NA) (NA) 3,906 (NA) (NA) (NA) (NA) 9,552 8,667 8,448 8,086 10,442 9,715 8,879 8,746 1,566 (NA) (NA) (NA) (NA) 1,465 (NA) (NA) (NA) (NA) 1,884 1,878 1,904 1,922 1,859 1,892 1,921 1,228
670 (NA) (NA) (NA) (NA) 1,005 (NA) (NA) (NA) (NA) 866 742 746 777 802 803 818 879 2,150 (NA) (NA) (NA) (NA) 5,019 (NA) (NA) (NA) (NA) 6,300 4,656 5,159 4,923 5,568 5,735 6,532 6,321 3,209 (NA) (NA) (NA) (NA) 4,994 (NA) (NA) (NA) (NA) 7,275 6,275 6,916 6,336 6,943 7,142 7,985 7,191
425 (NA) (NA) (NA) (NA) 613 (NA) (NA) (NA) (NA) 825 863 939 929 973 975 1,004 868 2,073 (NA) (NA) (NA) (NA) 3,492 (NA) (NA) (NA) (NA) 4,829 6,857 7,813 8,748 8,757 8,745 8,816 7,782 4,878 (NA) (NA) (NA) (NA) 5,697 (NA) (NA) (NA) (NA) 5,853 7,946 8,321 9,417 8,999 8,969 8,781 8,965
7,374 8,157 8,825 10,121 11,551 13,133 14,771 16,497 16,481 16,817 17,014 17,907 17,676 17,441 17,894 18,415 19,272 19,497 43,340 51,886 60,123 69,814 80,448 95,096 107,697 124,755 138,786 147,358 159,294 176,502 186,492 194,014 205,423 221,053 238,787 259,711 5,877 6,361 6,813 6,898 6,965 7,241 7,291 7,562 8,421 8,762 9,363 9,857 10,551 11,124 11,480 12,004 12,390 13,321
1,798 (NA) (NA) (NA) (NA) 4,772 (NA) (NA) (NA) (NA) 8,014 9,931 10,310 9,655 8,531 7,985 7,995 7,124 2,028 (NA) (NA) (NA) (NA) 6,356 (NA) (NA) (NA) (NA) 15,453 23,310 31,393 27,586 20,285 19,336 19,327 17,230 1,128 (NA) (NA) (NA) (NA) 1,332 (NA) (NA) (NA) (NA) 1,928 2,347 3,045 2,857 2,378 2,422 2,417 2,419
(NA) (NA) (NA) (NA) (NA) 2,956 (NA) (NA) (NA) (NA) 5,083 5,333 5,536 5,688 5,892 6,598 7,366 8,308 (NA) (NA) (NA) (NA) (NA) 9,594 (NA) (NA) (NA) (NA) 19,687 21,359 23,139 24,650 38,639 45,715 53,203 61,558 (NA) (NA) (NA) (NA) (NA) 3,246 (NA) (NA) (NA) (NA) 3,873 4,005 4,180 4,334 6,558 6,929 7,223 7,409
3,654 (NA) (NA) (NA) (NA) 3,542 (NA) (NA) (NA) (NA) 3,934 4,026 4,020 4,279 4,361 4,359 4,426 4,393 13,665 (NA) (NA) (NA) (NA) 16,341 (NA) (NA) (NA) (NA) 25,886 27,448 29,423 31,596 34,117 35,166 37,528 39,326 3,740 (NA) (NA) (NA) (NA) 4,613 (NA) (NA) (NA) (NA) 6,580 6,818 7,319 7,384 7,823 8,067 8,479 8,952
3,810 (NA) (NA) (NA) (NA) 5,391 (NA) (NA) (NA) (NA) 5,163 5,101 4,928 4,761 4,797 4,903 4,763 4,836 13,464 (NA) (NA) (NA) (NA) 36,163 (NA) (NA) (NA) (NA) 33,450 33,253 29,800 28,327 28,066 27,438 27,639 28,320 3,534 (NA) (NA) (NA) (NA) 6,708 (NA) (NA) (NA) (NA) 6,479 6,519 6,047 5,950 5,851 5,596 5,803 5,856
707 (NA) (NA) (NA) (NA) 961 (NA) (NA) (NA) (NA) 1,171 1,206 1,170 1,120 1,100 1,097 1,080 1,122 4,213 (NA) (NA) (NA) (NA) 7,244 (NA) (NA) (NA) (NA) 4,534 4,864 5,033 4,945 5,000 5,010 5,967 6,745 5,959 (NA) (NA) (NA) (NA) 7,538 (NA) (NA) (NA) (NA) 3,872 4,033 4,302 4,415 4,545 4,567 5,525 6,012
37 (NA) (NA) (NA) (NA) 77 (NA) (NA) (NA) (NA) 49 43 38 56 60 37 30 45 308 (NA) (NA) (NA) (NA) 385 (NA) (NA) (NA) (NA) 126 119 97 106 122 85 71 157 8 (NA) (NA) (NA) (NA) 5 (NA) (NA) (NA) (NA) 2,571 2,767 2,553 1,893 2,033 2,297 2,367 3,489
3,200 (NA) (NA) (NA) (NA) 2,477 (NA) (NA) (NA) (NA) 3,210 3,164 3,240 3,386 3,491 3,567 3,791 3,918 10,099 (NA) (NA) (NA) (NA) 48,478 (NA) (NA) (NA) (NA) 112,030 109,117 128,704 133,438 154,277 166,419 190,739 213,559 3,156 (NA) (NA) (NA) (NA) 19,571 (NA) (NA) (NA) (NA) 34,900 34,487 39,723 39,409 44,193 46,655 50,314 54,507
(NA) (NA) (NA) (NA) (NA) 3,010 (NA) (NA) (NA) (NA) 2,767 2,335 2,118 2,128 2,098 2,055 2,201 2,115 (NA) (NA) (NA) (NA) (NA) 51,004 (NA) (NA) (NA) (NA) 45,007 45,927 41,503 40,570 39,891 40,666 43,960 45,236 (NA) (NA) (NA) (NA) (NA) 16,945 (NA) (NA) (NA) (NA) 16,266 19,669 19,595 19,065 19,014 19,789 19,973 21,388
865 (NA) (NA) (NA) (NA) 1,075 (NA) (NA) (NA) (NA) 445 415 425 428 463 507 489 458 4,974 (NA) (NA) (NA) (NA) 10,329 (NA) (NA) (NA) (NA) 4,633 4,313 4,664 5,091 6,092 6,871 8,465 9,016 5,750 (NA) (NA) (NA) (NA) 9,608 (NA) (NA) (NA) (NA) 10,411 10,393 10,974 11,895 13,158 13,552 17,311 19,686
41 (NA) (NA) (NA) (NA) 74 (NA) (NA) (NA) (NA) 74 62 58 56 44 41 44 50 414 (NA) (NA) (NA) (NA) 653 (NA) (NA) (NA) (NA) 468 608 701 527 598 817 749 882 10,098 (NA) (NA) (NA) (NA) 8,824 (NA) (NA) (NA) (NA) 6,324 9,806 12,086 9,411 13,591 19,927 17,023 17,640
1,123 (NA) (NA) (NA) (NA) 892 (NA) (NA) (NA) (NA) 996 934 896 899 758 726 728 721 9,939 (NA) (NA) (NA) (NA) 6,493 (NA) (NA) (NA) (NA) 11,395 9,544 10,042 9,474 8,397 8,192 8,915 9,222 8,850 (NA) (NA) (NA) (NA) 7,279 (NA) (NA) (NA) (NA) 11,441 10,218 11,208 10,538 11,078 11,284 12,246 12,791
1,485 (NA) (NA) (NA) (NA) 1,729 (NA) (NA) (NA) (NA) 1,325 1,357 1,392 1,373 1,485 1,493 1,461 1,439 11,731 (NA) (NA) (NA) (NA) 18,499 (NA) (NA) (NA) (NA) 11,829 12,397 12,578 13,141 15,775 16,042 16,027 16,069 7,900 (NA) (NA) (NA) (NA) 10,699 (NA) (NA) (NA) (NA) 8,928 9,136 9,036 9,571 10,623 10,745 10,970 11,167
 
13,149 14,078 33,421 34,837 37,026 37,763 38,034 11,620 10,747 9,927 16,648 16,990 17,171 17,180 17,859 18,209 18,425 18,786 28,614 31,442 64,887 81,393 89,745 95,082 99,008 30,116 28,202 24,573 33,974 34,716 35,464 36,624 39,103 41,140 42,647 46,955 2,176 2,233 1,942 2,336 2,424 2,518 2,603 2,592 2,624 2,475 2,041 2,043 2,065 2,132 2,190 2,259 2,315 2,499
2,564 3,415 12,010 13,613 15,233 16,206 15,536 7,319 6,361 5,825 5,224 4,666 4,478 4,385 4,319 4,301 4,374 4,069 3,431 4,750 28,274 32,061 35,374 38,212 37,758 14,066 11,882 10,829 9,858 9,030 8,696 8,527 8,389 8,338 8,628 8,663 1,338 1,391 2,354 2,355 2,322 2,358 2,430 1,922 1,868 1,859 1,887 1,935 1,942 1,945 1,942 1,939 1,973 2,129
569 557 559 656 648 676 773 759 815 822 824 840 919 948 996 1,032 1,079 1,190 2,008 2,012 2,483 2,938 4,072 5,182 6,195 6,183 6,627 6,326 6,778 6,913 7,592 8,160 8,195 8,734 8,979 10,238 3,529 3,612 4,442 4,479 6,284 7,666 8,014 8,146 8,131 7,696 8,226 8,230 8,261 8,608 8,228 8,463 8,322 8,603
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 11,006 11,752 12,207 12,487 12,735 12,849 13,204 13,513 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 9,921 10,712 11,540 11,867 13,105 13,342 14,044 14,868 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 901 912 945 950 1,029 1,038 1,064 1,100
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 2,754 3,048 2,826 2,945 1,483 3,011 3,147 3,285 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 1,627 1,906 1,367 2,101 1,184 2,601 2,785 3,870 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 591 625 484 713 798 864 885 1,178
 
227,925 231,222 232,192 234,390 240,886 244,180 245,753 217,495 221,884 223,756 227,549 231,297 230,547 232,920 232,716 237,164 238,626 241,279 227,925 231,119 232,142 234,390 240,886 244,180 265,152 408,773 430,771 447,130 465,985 491,084 523,042 540,540 562,559 584,509 598,861 627,825 1,000 1,000 1,000 1,000 1,000 1,000 1,079 1,879 1,941 1,998 2,048 2,123 2,269 2,321 2,417 2,465 2,510 2,602
11,847 13,119 13,956 14,820 15,891 16,749 17,396 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
 
88,491 (NA) (NA) (NA) (NA) 96,849 (NA) (NA) (NA) (NA) 112,796 113,795 112,613 113,662 114,965 117,230 119,412 121,469 364,000 (NA) (NA) (NA) (NA) 554,734 (NA) (NA) (NA) (NA) 789,942 818,762 848,479 872,608 890,760 940,959 998,644 1,062,506 4,113 (NA) (NA) (NA) (NA) 5,728 (NA) (NA) (NA) (NA) 7,003 7,195 7,534 7,677 7,748 8,027 8,363 8,747
59,541 (NA) (NA) (NA) (NA) 57,000 (NA) (NA) (NA) (NA) 80,621 81,305 80,072 80,841 81,947 83,223 83,997 84,844 145,972 (NA) (NA) (NA) (NA) 144,994 (NA) (NA) (NA) (NA) 331,457 351,076 366,534 370,905 397,106 413,585 426,103 441,696 2,452 (NA) (NA) (NA) (NA) 2,544 (NA) (NA) (NA) (NA) 4,111 4,318 4,578 4,588 4,846 4,970 5,073 5,206
 
(NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 10,954 11,038 10,643 10,548 10,622 10,810 11,043 11,136 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 10,616 10,979 11,311 11,229 12,079 12,319 13,294 13,333 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 969 995 1,063 1,065 1,137 1,140 1,204 1,197
28,950 31,571 33,433 35,230 38,203 39,848 40,667 35,628 31,903 31,972 32,175 32,490 32,541 32,821 33,018 34,008 35,415 36,625 218,028 256,448 284,506 309,634 358,876 405,024 447,058 392,020 395,216 430,978 458,485 467,698 481,946 490,404 493,654 527,374 572,541 620,810 7,531 8,123 8,510 8,789 9,394 10,164 10,993 11,003 12,388 13,480 14,250 14,395 14,810 14,942 14,951 15,507 16,167 16,950
19,458 21,141 21,982 9,720 10,675 10,777 10,542 5,356 4,810 5,128 5,091 5,339 5,508 5,490 5,229 5,351 5,397 5,256 14,972 17,879 21,705 18,074 21,450 22,926 25,112 17,152 17,994 20,921 21,457 23,726 25,747 26,510 26,378 26,964 27,002 29,284 769 846 987 1,859 2,009 2,127 2,382 3,202 3,741 4,080 4,215 4,444 4,674 4,829 5,045 5,039 5,003 5,572
28,749 31,249 33,081 34,872 37,902 39,548 40,420 34,866 31,328 31,393 31,594 31,969 31,959 32,264 32,569 33,530 34,855 36,095 69,404 79,699 88,037 99,750 115,245 128,085 143,446 119,388 120,628 131,300 140,011 147,858 160,453 169,850 175,848 188,644 203,776 220,628 2,414 2,550 2,661 2,860 3,041 3,239 3,549 3,424 3,850 4,182 4,432 4,625 5,021 5,264 5,399 5,626 5,846 6,112
26,677 28,764 30,244 31,684 35,514 36,287 37,261 33,126 29,631 29,438 29,395 27,418 27,347 27,498 27,873 28,705 29,803 30,790 91,187 108,718 121,852 134,692 158,176 180,095 196,566 179,942 179,738 193,186 208,354 213,724 208,656 200,190 197,240 215,078 233,151 250,599 3,418 3,780 4,029 4,251 4,454 4,963 5,275 5,432 6,066 6,562 7,088 7,795 7,630 7,280 7,076 7,493 7,823 8,139
22,359 (NA) (NA) (NA) (NA) 28,052 (NA) (NA) (NA) (NA) 26,679 27,001 26,984 27,173 27,518 28,350 29,436 30,436 59,314 (NA) (NA) (NA) (NA) 115,037 (NA) (NA) (NA) (NA) 189,233 200,995 196,946 188,594 185,709 203,074 220,203 235,970 2,653 (NA) (NA) (NA) (NA) 4,101 (NA) (NA) (NA) (NA) 7,093 7,444 7,299 6,940 6,749 7,163 7,481 7,753
26,601 28,996 30,511 32,030 34,608 36,162 36,714 32,230 29,111 29,132 29,230 29,551 29,603 29,799 29,849 30,541 31,592 32,613 25,810 30,801 33,472 37,678 42,120 47,963 53,816 49,624 50,949 55,459 57,243 60,574 63,843 68,354 70,545 74,992 86,159 99,192 970 1,062 1,097 1,176 1,217 1,326 1,466 1,540 1,750 1,904 1,958 2,050 2,157 2,294 2,363 2,455 2,727 3,041
 
88,105 89,851 89,718 90,817 94,178 96,124 97,358 90,079 90,282 92,314 93,148 92,718 90,717 90,831 92,793 94,612 96,577 99,315 1,279,985 1,410,881 1,473,349 1,544,873 1,701,366 1,820,741 1,947,025 1,850,597 2,069,967 2,173,346 2,263,661 2,284,088 2,395,696 2,453,543 2,597,980 2,813,826 3,089,667 3,429,109 14,528 15,702 16,422 17,011 18,065 18,942 19,999 20,544 22,928 23,543 24,302 24,635 26,408 27,012 27,998 29,741 31,992 34,528
76,136 79,011 79,350 80,611 84,440 85,994 86,601 89,718 90,219 92,246 93,089 92,636 90,633 90,755 92,702 94,498 96,522 99,226 256,294 293,590 283,932 279,842 306,686 332,165 367,592 373,857 418,889 438,240 453,128 454,503 482,631 508,894 541,571 596,169 666,724 739,482 3,366 3,716 3,578 3,472 3,632 3,863 4,245 4,167 4,643 4,751 4,868 4,906 5,325 5,607 5,842 6,309 6,907 7,453
 
19,674 74,940 18,883 19,421 20,468 20,995 16,859 12,901 14,099 12,035 12,484 12,737 12,733 13,222 15,042 15,240 15,851 16,195 7,216 11,288 7,854 8,191 9,263 10,248 7,021 6,329 7,047 6,131 6,831 7,286 7,749 8,159 8,927 10,040 11,304 12,179 367 151 416 422 453 488 416 491 500 509 547 572 609 617 593 659 713 752
4,231 4,578 5,004 6,367 7,546 8,418 8,950 8,520 9,023 6,028 6,144 5,896 5,980 6,090 6,012 5,964 5,974 5,796 956 1,148 1,501 2,051 2,649 3,128 3,397 3,438 3,813 2,439 2,549 2,521 2,527 2,559 2,526 2,518 2,531 2,464 226 251 300 322 351 372 380 404 423 405 415 428 423 420 420 422 424 425
562 474 483 423 474 463 430 354 357 320 340 285 240 223 222 252 168 190 135 124 131 116 107 109 86 67 69 64 62 57 51 49 47 48 32 41 240 262 271 274 226 235 200 189 193 200 182 200 213 220 212 190 190 216
393 388 361 374 434 454 424 560 559 642 772 875 1,069 1,293 1,546 1,731 2,106 2,334 1,342 1,234 757 618 738 783 774 1,099 1,087 1,312 1,682 1,824 2,047 2,218 2,309 2,965 3,539 4,073 3,415 3,180 2,097 1,652 1,700 1,725 1,825 1,963 1,945 2,044 2,179 2,085 1,915 1,715 1,494 1,713 1,680 1,745
(NA) (NA) (NA) (NA) 5,289 4,614 680 514 365 332 263 260 252 255 301 268 298 306 (NA) (NA) (NA) (NA) 4,183 4,791 1,116 1,019 718 593 616 523 575 578 690 703 743 826 (NA) (NA) (NA) (NA) 791 1,038 1,641 1,982 1,967 1,786 2,342 2,012 2,282 2,267 2,292 2,623 2,493 2,699
 
73,840 (NA) (NA) (NA) (NA) 82,762 (NA) (NA) (NA) (NA) 89,844 88,717 86,708 86,420 87,602 89,233 90,907 93,450 249,078 (NA) (NA) (NA) (NA) 321,917 (NA) (NA) (NA) (NA) 446,296 447,216 474,882 500,735 532,644 586,128 655,420 727,303 3,373 (NA) (NA) (NA) (NA) 3,890 (NA) (NA) (NA) (NA) 4,967 5,041 5,477 5,794 6,080 6,569 7,210 7,783
73,906 76,725 77,035 78,016 81,640 82,846 83,967 86,724 87,135 89,178 89,862 88,734 86,732 86,436 87,619 89,253 90,929 93,471 250,341 284,129 277,597 274,181 301,923 325,710 367,287 369,203 412,870 432,940 447,127 448,430 476,239 502,788 534,856 588,419 658,245 731,321 3,387 3,703 3,604 3,514 3,698 3,932 4,374 4,257 4,738 4,855 4,976 5,054 5,491 5,817 6,104 6,593 7,239 7,824
95 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) 413 (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA) (NA)
123 (NA) (NA) (NA) (NA) 428 (NA) (NA) (NA) (NA) 132 244 287 335 369 414 478 618 850 (NA) (NA) (NA) (NA) 3,792 (NA) (NA) (NA) (NA) 830 1,213 1,357 2,053 2,212 2,291 2,813 4,005 6,911 (NA) (NA) (NA) (NA) 8,860 (NA) (NA) (NA) (NA) 6,288 4,971 4,728 6,128 5,995 5,534 5,885 6,481
 
6,954 (NA) (NA) (NA) (NA) 6,500 (NA) (NA) (NA) (NA) 12,555 13,665 14,097 15,117 19,017 19,334 19,464 19,391 1,986 (NA) (NA) (NA) (NA) 2,088 (NA) (NA) 5,896 6,576 7,512 11,105 13,028 14,048 21,105 25,956 28,825 30,389 286 (NA) (NA) (NA) (NA) 321 (NA) (NA) (NA) (NA) 598 813 924 929 1,110 1,343 1,481 1,567
3,154 (NA) (NA) (NA) (NA) 2,689 (NA) (NA) (NA) (NA) 5,702 6,178 5,974 6,131 7,756 7,851 8,195 8,400 451 (NA) (NA) (NA) (NA) 380 (NA) (NA) (NA) (NA) 1,617 2,082 2,059 2,300 2,786 3,146 3,563 3,768 143 (NA) (NA) (NA) (NA) 141 (NA) (NA) (NA) (NA) 284 337 345 375 359 401 435 449
721 (NA) (NA) (NA) (NA) 775 (NA) (NA) (NA) (NA) 1,355 4,329 534 1,870 2,791 2,909 3,028 3,041 164 (NA) (NA) (NA) (NA) 209 (NA) (NA) (NA) (NA) 659 189 163 1,208 1,722 1,981 2,105 2,225 227 (NA) (NA) (NA) (NA) 270 (NA) (NA) (NA) (NA) 486 44 305 646 617 681 695 732
4,997 (NA) (NA) (NA) (NA) 4,743 (NA) (NA) (NA) (NA) 8,698 10,322 10,934 12,173 14,654 15,178 15,380 15,368 1,370 (NA) (NA) (NA) (NA) 1,499 (NA) (NA) (NA) (NA) 5,266 8,183 9,959 12,028 16,598 20,829 23,157 24,396 274 (NA) (NA) (NA) (NA) 316 (NA) (NA) (NA) (NA) 605 793 911 988 1,133 1,372 1,506 1,587
 
87,439 (NA) (NA) (NA) (NA) 93,980 (NA) (NA) (NA) (NA) 104,816 105,533 104,316 105,148 109,153 111,099 112,926 112,455 271,501 (NA) (NA) (NA) (NA) 374,658 (NA) (NA) (NA) (NA) 495,922 505,723 532,285 563,963 618,682 670,131 737,610 785,183 3,105 (NA) (NA) (NA) (NA) 3,987 (NA) (NA) (NA) (NA) 4,731 4,792 5,103 5,364 5,668 6,032 6,532 6,982
1,113 (NA) (NA) (NA) (NA) 871 (NA) (NA) (NA) (NA) 931 807 933 897 931 1,033 1,179 1,268 427 (NA) (NA) (NA) (NA) 600 (NA) (NA) (NA) (NA) 905 771 846 925 935 1,081 1,313 1,400 384 (NA) (NA) (NA) (NA) 689 (NA) (NA) (NA) (NA) 972 955 907 1,031 1,004 1,046 1,114 1,104
8,504 (NA) (NA) (NA) (NA) 11,795 (NA) (NA) (NA) (NA) 12,806 12,658 12,783 12,380 12,084 11,904 12,334 12,766 37,867 (NA) (NA) (NA) (NA) 64,406 (NA) (NA) (NA) (NA) 91,607 92,577 113,747 116,326 115,984 122,489 141,571 162,584 4,453 (NA) (NA) (NA) (NA) 5,460 (NA) (NA) (NA) (NA) 7,153 7,314 8,898 9,396 9,598 10,290 11,478 12,736
550 (NA) (NA) (NA) (NA) 889 (NA) (NA) (NA) (NA) 1,305 1,114 1,152 1,167 1,249 1,369 1,423 1,597 3,923 (NA) (NA) (NA) (NA) 10,215 (NA) (NA) (NA) (NA) 16,704 14,564 9,948 11,830 19,753 24,929 32,447 38,918 7,133 (NA) (NA) (NA) (NA) 11,490 (NA) (NA) (NA) (NA) 12,800 13,074 8,635 10,137 15,815 18,210 22,802 24,369
21,756 (NA) (NA) (NA) (NA) 21,210 (NA) (NA) (NA) (NA) 26,987 25,568 29,036 28,638 27,640 29,734 30,602 31,198 32,844 (NA) (NA) (NA) (NA) 39,091 (NA) (NA) (NA) (NA) 56,561 53,046 50,411 50,331 60,508 71,153 85,337 93,910 1,510 (NA) (NA) (NA) (NA) 1,843 (NA) (NA) (NA) (NA) 2,096 2,075 1,736 1,757 2,189 2,393 2,789 3,010
69,868 (NA) (NA) (NA) (NA) 77,424 (NA) (NA) (NA) (NA) 83,508 85,564 80,991 82,403 85,089 85,349 86,492 88,311 49,458 (NA) (NA) (NA) (NA) 76,220 (NA) (NA) (NA) (NA) 88,479 95,269 92,048 98,875 112,924 119,462 128,964 140,110 708 (NA) (NA) (NA) (NA) 984 (NA) (NA) (NA) (NA) 1,060 1,113 1,137 1,200 1,327 1,400 1,491 1,587
68,233 (NA) (NA) (NA) (NA) 74,915 (NA) (NA) (NA) (NA) 80,514 82,402 77,841 79,275 82,137 82,744 83,669 85,381 46,680 (NA) (NA) (NA) (NA) 68,934 (NA) (NA) (NA) (NA) 78,103 84,043 78,880 84,777 98,540 104,537 111,681 119,707 684 (NA) (NA) (NA) (NA) 920 (NA) (NA) (NA) (NA) 970 1,020 1,013 1,069 1,200 1,263 1,335 1,402




NA Not available.
1 S Corporations are certain small corporations with up to 35 shareholders (25 for 1982; 15 for 1980-81; 10 for 1970-75, mostly individuals, electing to be taxed at the shareholder level.
2 Includes items not shown separately. Beginning 1991, total exemptions amount is after limitation.
3 For 1985, includes charitable deduction for nonitemizers. Beginning 1989, includes additional standard deductions for age 65 or older for blindness. Beginning 1991, total itemized deductions are after limitation.
4 For 1980 and 1985, includes amounts "taxed" at zero percent.
5 For 1981, includes tax reduction credit.
6 Investment credit was included in the more-inclusive general business tax credit starting with 1984. With exceptions, investment credit was repealed effective 1986.
7 Includes minimum tax or alternative minimum tax.

Source: U.S. Internal Revenue Service, Statistics of Income Bulletin, and Statistics of Income, Individual Income Tax Returns, annual.

http://www.irs.ustreas.gov/prod/tax_stats/index.html TERMS

AdjustedGrossIncomeLessDeficit (line31,Form1040) Incomethathadtobereportedforthecalculationoftotalincome(line22,Form1040) andofadjustedgrossincomeincludedthefollowing: Compensationforservices,includingwages,salaries,fees,commissions,tips,taxable fringebenefits,andsimilaritems; Taxableinterestreceived; Dividendsandcapitalgaindistributions; Taxablerefundsofstateandlocalincometaxes; Alimonyandseparatemaintenancepayments; Netincomederivedfromabusiness,profession,orfarm; Netgainfromthesaleofcapitalassets; Netgainfromthesaleofbusinessproperty; Taxableamountsofannuities,pensions,andindividualretirementarrangement(IRA) distributions; Rentsandroyalties; Distributiveshareofpartnershipincome; Incomefromanestateortrust; Unemploymentcompensation; Taxableamountsofsocialsecurityandrailroadretirement(Tier1)payments; Prizes,awards,andgamblingwinnings; Amountsreceivedthatwereclaimedasadeductionorcreditinaprioryear;and Barteringincome. Somereportedincomewasfullyorpartiallyexcludedfromtotalincomefor1994.The followingisalistofsuchitems: Thecostbasisofpension,annuity,orIRApaymentsordistributions; Tax-exemptinterest; Limitedexclusionofsocialsecuritybenefitsandrailroadretirementbenefits(only reportediftherewasalsoataxableamount); Limitedexclusionofqualifiedforeignearnedincome;and One-timeexclusionofpartorallofthegainfromsaleofprincipalresidenceby individualswhoare55yearsofageorolder. Fromtotalincome,thefollowingstatutoryadjustments(lines23through29,Form1040) weresubtractedtoarriveatadjustedgrossincome(line31,Form1040): Contributionstoself-employedretirementplans(Keoghorsimplifiedemployeepension) andcertaincontributionstoIRAs; Movingexpenses; One-halfofself-employmenttax; Self-employedhealthinsurancededuction; Forfeitedinterestandpenaltiesincurredbypersonswhomadeprematurewithdrawalsof fundsfromtimesavingsaccounts; Alimonypayments; Forestationorreforestationexpenses; Foreignhousingexclusion; Repaymentsofsupplementalunemploymentcompensation; Certainexpensesofqualifiedperformingartists;and Amountofjurydutypayreportedonline21,Form1040,thatwasrepaidtoemployers. Adeficitoccurrediftheallowableexclusionsanddeductionsexceededgrossincome, (i.e.,theamountonline30wasgreaterthantheamountonline22).

Adjustments See"StatutoryAdjustments."

AdvanceEarnedIncomeCreditPayments (line52,Form1040) Taxpayerswhobelievetheywouldbeeligiblefortheearnedincomecreditattheendof theyearcouldreceivepartofthecreditfromtheiremployersasanadditionalpaymentintheir paychecksduringtheyear.Thosepaymentswerethenshownonthetaxreturnwherethey eitherincreasedthebalancedueamountorreducedtheamountoftheoverpayment.

AlimonyPaid (line29,Form1040) Paymentsmadeasalimonyorseparatemaintenancecountedasadeduction(an adjustmenttototalincome)forthepersonpayingthem.

AlimonyReceived (line11,Form1040) Paymentsreceivedasalimonyorseparatemaintenancewereincometotheperson receivingthem.

AllOtherTaxes (lines47,49,50,51,Form1040) Forthestatisticsinthisreport,thisamountrepresentsthesumoftheself-employmenttax, taxfromtherecaptureoftheinvestmentcreditandthelowincomehousingcredit,social securityandMedicaretaxesontipincome,penaltytaxonqualifiedretirementplans,and otherunspecifiedtaxeswhichincludeduncollectedFICA(orsocialsecurity)taxontips, excessgoldenparachutepayments,andsection72penaltytaxes.Thisdiffersslightlyfromthe "othertaxes"portionoftheForm1040itself,whichincludedthetaxeslistedaboveplusthe alternativeminimumtaxandtheadvanceearnedincomecreditpaymentsreceived.

Alternativeminimumtaxwastabulatedinthisreportasapartof"totalincometax"andwas oneofthecriteriafordeterminingthetaxableornontaxableclassificationofthereturn. Advanceearnedincomecreditpaymentsareshownasaseparateitemincomputingtotaltax liability,balancedueorrefund.(Seealso"TaxableandNontaxableReturns"and"Total IncomeTax.")

AlternativeMinimumTax (line48,Form1040)

Thealternativeminimumtax(AMT)wasleviedonbenefitsreceivedintheformof deductionsandexclusionswhichreducedanindividualsregulareffectivetaxrate.These benefits,knownas"alternativeminimumtaxpreferencesandadjustments,"resultedfromthe treatmentthatthetaxlawgavetoparticularincomeandexpenseitems. Alternativeminimumtaxableincome(line21,Form6251)wasdefinedastaxableincome adjustedfornetoperatinglossesfromothertaxyearsplustheamountofadjustmentsand preferences.Alternativeminimumtaxableincome(AMTI)wasthenreducedbyanexemption amountdeterminedbyfilingstatusandAMTI.Ifthereturnwasfiledjointlybyamarried coupleorasurvivingspouse,themaximumamountoftheexemptionwas$45,000.The maximumamountforasingleorheadofhouseholdtaxpayerwas$33,750,andforamarried couplefilingseparately,$22,500.TheAMTexclusionwasphasedoutifAMTIexceeded certainlevels.Forsingletaxpayers,thephase-outbeganat$112,500andendedat$247,500. Forjointreturnstherangewas$150,000to$330,000,andformarriedcouplesfiling separately,therangewas$75,000to$165,000.

Iftherewasanamountremainingaftersubtractingtheexemption,thefirst$175,000 ($87,500orlessifmarriedfilingseparately)wastaxedata26percentrate;anyexcesswas taxedata28percentrate.Thisamountwasthenreducedbytherecalculatedalternative minimumtax,foreigntaxcredit,andregularincometaxbeforecredits(line38,Form1040 plusanytaxfromForm4970includedonline39;Form1040minustheregularforeigntax credit,line43,Form1040)toarriveatthealternativeminimumtax.

BasicStandardDeduction (includedinline34,Form1040) See"StandardDeduction."

BusinessorProfessionNetIncomeorLoss (line12,Form1040) Thissourceofincomeorlosswasreportedbyindividualswhoweresoleproprietorsofa nonfarmbusiness,includingself-employedmembersofaprofession. Iftwoormoresoleproprietorshipswereoperatedbythesametaxpayer,thesingleamount ofnetincomeorlossincludedintheadjustedgrossincomerepresentedthecombinednet incomeandlossfromallsoleproprietorships.Theproprietorwasrequiredtoexclude investmentincomefrombusinessprofitsandincludeit,instead,withthevarioustypesof investmentincomeforwhichseparateprovisionsweremadeontheindividualincometax return.

Totalexpenses(line28,ScheduleC)weredeductedfromgrossincome(line7,Schedule C)toarriveatatentativeprofitorloss.Expensesforbusinessuseofthetaxpayer'shome (line30,ScheduleC)werethendeductedtoarriveatnetincomeorloss.Compensationofthe proprietorwastaxableincomeand,therefore,notallowedasabusinessdeductionin computingnetincome.Thedeductionofnetoperatinglossesfrompreviousyearswasnot consideredabusinessexpense,butwasoffsetagainst"OtherIncome"(line21,Form1040). Informationonsoleproprietorships,businessreceipts,andexpenditurescanbefoundin theannualfallissueoftheStatisticsofIncomeBulletin.

CapitalAssets See"SalesofCapitalAssets,NetGainorLoss."

CapitalGainDistributionsReportedonForm1040 (line13,Form1040) Thesedistributionsincludedlong-termcapitalgaineithercreditedordistributedto individualtaxpayersbyregulatedinvestmentcompanies,mutualfunds,andrealestatetrusts. TaxpayersalsoreportedcapitalgaindistributionsonScheduleD,CapitalGainsandLosses, buttheycouldenterthedistributionsdirectlyonline13ofForm1040iftheyhadnoother gainorlosstoreportonScheduleD.

CapitalGainsandLosses See"SalesofCapitalAssets,NetGainorLoss."

CasualtyorTheftLossDeduction,Nonbusiness (line19,ScheduleA) Nonbusinesscasualtyandtheftlossesweredeductible,asanitemizeddeduction,from adjustedgrossincometotheextentthatnonreimbursablenetlossforeachsuchcasualtyor theftexceeded$100,andthecombinedamountforallnetlossesduringtheyearexceeded10 percentofadjustedgrossincome.(Seealso"TotalItemizedDeductions.")

ChildCareCredit (line41,Form1040) Thiscreditcouldbeclaimedbytaxpayerswho,whileemployedorlookingforwork, incurredexpensesforthecareofdependentchildrenunderage13,ordisableddependentsof anyage.Qualifiedexpensesincludedthoseforservicesperformedwithinthehomeby non-dependentbabysitters,maids,orcooks.Expenditurespaidforthecareofchildrenunder theage13oranyotherqualifiedindividualsforout-of-home,non-institutionalcarequalified forthechildcarecredit.

Themaximumamountofcare-relatedexpensesonwhichthecreditcouldbebased,with onequalifyingchildordependent,wasthesmallerofearnedincomeor$2,400;withmore thanonedependent,thecreditwasbasedonthesmallerofearnedincomeor$4,800.For returnsofmarriedcouplesfilingjointly,earnedincomereferstotheearningsofthespouse withthelesserearnedincome.Exceptionswereallowedifthespousewasdisabledora full-timestudent.

Thecreditwasequalto30percentofeligibleexpensesfortaxpayerswithadjustedgross incomeof$10,000orless.Thecreditwasreducedbyonepercentagepointforeach$2,000 incrementofadjustedgrossincomeinexcessof$10,000upto$28,000.Thecreditremained at20percentofexpensesforindividualswithadjustedgrossincomeover$28,000. Theamountofthecreditwhichcouldbeclaimedwaslimitedtoincometaxbeforecredits, andanyexcesswasnotrefundable.

ContributionsDeductionDD (lines15-18,ScheduleA) Taxpayerscoulddeductcontributionstocertainorganizationsthatwerereligious, charitable,educational,scientific,orliteraryinpurpose.Contributionscouldbeincash, property,orout-of-pocketexpensesthatataxpayerpaidtodovolunteerworkforaqualified organization.ContributionswereallowedasanitemizeddeductiononScheduleA.Cash contributionsweregenerallylimitedtoone-halfofthetaxpayersAGI.Therefore,thesumof theseparatecharitablecontributionscouldbemorethanthetotaldeduction(whichhadbeen limited).ContributionswhichcouldnotbedeductedduetotheAGIlimitationcouldbe carriedovertofutureyears(andbroughtoverfrompreviousyears).Beginningin1994,for allcharitablecontributionsof$250ormore,awrittenacknowledgmentfromthequalified recipientorganizationwasrequired.

CreditforFederalTaxonGasolineandSpecialFuels (line59b,Form1040) Thiscredit(claimedonForm4136)wasallowedforfederalexcisetaxespaidongasoline andspecialfuels,suchasgasoholanddieselfuel,providedthefuelwasusedforcertain purposes(suchasfarmornon-highwayuseinatradeorbusiness),boughtatapricethat includedthetax,andarefundofthetaxwasnotrequestedorreceived.Thecreditcould reduceunpaidtotaltaxliabilityorcouldberefunded.Aone-timerefundablecreditwas allowedtotheoriginalpurchaserofanew,qualifieddiesel-poweredhighwayvehicle.The creditwas$102foracar,and$198foralighttruckorvan.

CreditfortheElderlyorDisabled (line42,Form1040) Acredit(claimedonScheduleR)fortheelderlyorpermanentlyandtotallydisabledwas availabletotaxpayersage65orolder(withincertainincomelimitations),andtothose taxpayersunderage65whohadretiredwithapermanentandtotaldisabilityandwhohad receivedtaxableincomefromapublicorprivateemployerbecauseofthatdisability.The incometowhichthecreditcouldbeappliedwasreducedbynontaxableamountsofsocial securityandrailroadretirementbenefits,veteranspensions,andanyotherpension,annuity, ordisabilitybenefitsthatwereexcludedfromincomeunderanyotherprovisionsofthelaw.

Anindividualwasconsideredpermanentlyandtotallydisabledwhenheorshecouldnot engageinanysubstantialgainfulactivitybecauseofaphysicalormentalconditionwhichhad lasted,orwasexpectedtolast,atleasttwelvemonths,orwasdeterminedtobeterminal. Themaximumcreditavailable($1,125),waslimitedtototalincometaxwithanyexcess notrefundable,andwasreducedifthetaxpayersincomeexceededcertainlevels.Generally, ifataxpayersincomewashighenoughtorequirethereportingofsocialsecuritybenefitsas taxableincome,thetaxpayercouldnottakethecredit.

CreditfromRegulatedInvestmentCompanies (line59,Form1040) Taxpayerswererequiredtoincludeintotalincomeanyamountswhichwereallocatedto themasundistributedlong-termcapitalgainsofregulatedinvestmentcompanies.If investmentcompaniespaidtaxonthecapitalgain,taxpayerswereentitledtoclaima refundablecredit(claimedonForm2439)fortheirproportionateshareofthetaxpaid.

Creditto1995EstimatedTax (line63,Form1040) Thisamountwasthepartoftheoverpaymentof1994taxwhichtaxpayersspecifically requestedtobecreditedtotheirestimatedtaxfor1995.(Seealso"Overpayment"and "EstimatedTaxPayments.")

DeductionofSelf-EmploymentTax (line25,Form1040) Ifataxpayerhadincomefromself-employmentandowedself-employmenttax,one-half ofthattaxwasdeductibleforincometaxpurposes.Theamountwassubtractedasan adjustmentfromtotalincomeinthecalculationofAGI.

Dividends (line9,Form1040) Dividendincomeconsistedofdistributionsofmoney,stock,orotherpropertyreceivedby taxpayersfromdomesticandforeigncorporations,eitherdirectlyorpassedthroughestates, trusts,orpartnerships.Dividendsalsoincludeddistributionsfrommoneymarketmutual funds.

Dividendsdidnotincludenontaxabledistributionsofstockorstockrights,returnsof capital,capitalgains,orliquidationdistributions.Taxpayerswerealsoinstructedtoexclude amountspaidondepositsorwithdrawableaccountsinbanks,mutualsavingsbanks, cooperativebanks,savingsandloanassociations,andcreditunions,whichweretobetreated asinterestincome.

EarnedIncomeCreditDD (line56,Form1040) Theearnedincomecreditconsistedofthebasiccreditwithamaximumof $2,038foronequalifyingchildand$2,528fortwoormorequalifyingchildren.In1994,the creditwasmodifiedtoincludenotonlyworkerswhohadaqualifyingchildlivingwiththem formorethanhalftheyearandwhoseearnedincomeandadjustedgrossincomewereeach lessthan$23,755($25,296ifmorethanonequalifyingchild)butalsotoincludecertain taxpayerswithoutdependentchildren.Fortaxpayerswithoutchildren,thecredithada maximumof$306.Thetaxpayermusthaveearnedincomeandadjustedgrossincomeless than$9,000andthey(ortheirspouse)mustbeatleast25yearsofageandlessthan65years oldtoclaimthecredit.Thecreditwasgenerallybasedonearnedincome,consistingof wages,salaries,andotheremployeecompensation,plusnetearningsfromself-employment. Taxpayerscouldnottakethecreditiftheirfilingstatuswasmarriedfilingseparately,orthey claimedtheforeignincomeexclusion.Alsofor1994,thehealthinsurancecreditandthe extracreditforachildbornduringtheyearwereeliminated.

For this report, the earned income credit is divided into three parts: the amount used to offset income tax before credits (limited to the amount needed to reduce income tax after credits to zero); the amount used to offset all other taxes (limited to the amount needed to reduce total tax liability to zero); and the refundable portion. (See also "Advance Earned Income Credit Payments.")

Earned Income Credit, Refundable Portion See "Earned Income Credit."

Earned Income Credit Used to Offset Income Tax Before Credits See "Earned Income Credit."

Earned Income Credit Used to Offset Other Taxes See "Earned Income Credit."

Employee Business Expense See "Unreimbursed Employee Business Expenses."

Estate or Trust Net Income or Loss (line 36, Schedule E, Part III) This was the beneficiarys share of fiduciary income (with the exception of the items described below, which were reported separately) from any estate or trust. Income from estates or trusts included amounts required to be distributed, amounts credited to beneficiaries accounts from current-year fiduciary income (whether or not actually distributed), and any other amounts which were properly paid, credited, or required to be distributed for that year.

Taxpayers excluded their share of dividends and gains or losses from sales of capital assets or other property, from estate or trust income. Such income (which made up the largest portion of income from estates or trusts) was included on the tax return on the separate lines provided for these income types and was not separately identified for the statistics. A loss from an estate or trust was allocated to the beneficiary only upon settlement or termination of an estate or trust and was limited by the "passive loss" rules.

For the tables, if a return showed net income from one estate or trust, and a net loss from another, that return was tabulated in both the "total income" and "total loss" columns. The columns labeled "net income" and "net loss" represent the sum of all income and losses reported from all estates or trusts, i.e., the net amount computed on a return-by-return basis.

Estimated Tax Payments (line 55, Form 1040) This figure represents the total of the tax payments made for 1994 using Form 1040-ES, and any overpayment from the taxpayers 1993 return that was applied to the 1994 estimated tax. Generally, individuals were required to make estimated tax payments if they expected to owe, after subtracting withholding and credits, at least $500 in tax for 1994, and they expected withholding and credits to be less than the smaller of: (a) 90% of the tax shown on Form 1040 for 1994, or (b) 100% of the tax shown on Form 1040 for 1993.

Excess Social Security Taxes Withheld D D (line 58, Form 1040) If a taxpayer earned more than $60,600 ($57,600 for 1993) in total wages from two or more employers in 1994, too much social security (FICA) or Railroad Retirement Tax Act (RRTA) tax may have been withheld from his or her wages. For 1994, there was no wage base limitation for Medicare tax, therefore all covered wages were subject to Medicare tax. Filers claimed credit for such overpayment on their tax returns. The excess social security, or RRTA, taxes withheld could be taken as a credit toward payment of the taxpayers income tax, or refunded. In the case of a joint return, the credit was computed separately for each taxpayer.

Exemptions D D (lines 6, 36, Form 1040) In the computation of taxable income, a $2,450 deduction ($2,350 for 1993) was allowed for each exemption claimed if adjusted gross income was less than $83,850. In general, an exemption was allowed for each taxpayer and dependent shown on a return. If an individual who could be claimed as a dependent by another taxpayer filed a return, that individual could not claim his or her own exemption.

With few exceptions, an individual had to meet five requirements to qualify as a dependent: 1) The individual received more than half of his or her support for the year from the taxpayer; 2) The individual was related to the taxpayer (such as a son, daughter, or parent) or was a member of the same household for the entire year; 3) The individual did not file a joint return with his or her spouse; 4) The individual met certain citizenship requirements; 5) The individuals gross income was less than $2,450. An exception to the income limitation was granted to children under age 19, or full-time students under age 24. These statistics classify the exemptions as children at home, children away from home, parents, and other.

If a taxpayer had AGI above certain levels, his or her personal exemption deduction may have been reduced or eliminated. For single taxpayers, the phaseout began at $111,800 and was completed at $234,300; for married persons filing jointly and surviving spouses, the phaseout began at $167,700 and was completed at $290,200; for heads of household, the phaseout began at $139,750 and was completed at $262,250; and for married persons filing separately, the phaseout began at $83,850 and was completed at $145,100.

Farm Net Income or Loss (line 18, Form 1040) This source of income or loss was reported by individuals who were sole proprietors of farms. When there were two or more farms operated by the same taxpayer, the single amount of profit or loss included in the adjusted gross income represented the combined profit and loss from all farming activities. Farm business total expenses (line 35, Schedule F) were deducted from farm gross income (line 11, Schedule F) to arrive at farm net profit or loss. Gains from certain sales of livestock and crops that qualified for capital gains treatment were excluded from farm net profit or loss and were included in capital gains. Farm rental income was included in total rent net income or loss. (See also "Farm Rental Net Income or Loss.")

Farm Rental Net Income or Loss (line 39, Schedule E) Taxpayers were required to report farm rental income and expenses separately from other farm profit or loss if they: a) received income that was based on crops or livestock produced by the tenant, and b) did not manage or operate the farm to any great extent.

Filing Status See "Marital Filing Status."

Foreign Earned Income Exclusion (included in line 21, Form 1040) Qualified taxpayers could exclude from total income a certain amount of their foreign earned income and employer-provided foreign housing expenses if their home, for tax purposes, was in a foreign country.

Qualifying individuals were limited to the lesser of a $70,000 exclusion or their total foreign earned income. Also, they could elect to exclude a portion of employer-provided foreign housing expenses. If the taxpayer elected to take both the foreign earned income and foreign housing exclusions, the total amount of both exclusions was limited to the taxpayers total foreign earned income. The foreign earned income exclusion was entered as a negative amount on this line by the taxpayer but edited into a separate field during service center processing.

Foreign Housing Deduction (included in the total on line 30, Form 1040) Qualified taxpayers who had foreign housing expenses that were not provided by their employer were eligible to deduct these expenses from total income. This deduction together with the foreign earned income exclusion was limited to the total amount of foreign earned income for 1994.

Foreign Tax Credit (line 43, Form 1040) Individuals who paid income or excess profit taxes to a foreign country or U.S. possession could claim either this credit against Federal income tax liability, or take an itemized deduction for the amount of the foreign tax payment. Depending on the taxpayers income and taxes, the foreign tax credit could be less than the amount of foreign tax paid. Qualifying foreign taxes paid in excess of the allowable amount for Tax Year 1994 could be carried back 2 years and then forward 5 years.

Forfeited Interest Penalty Adjustment (line 28, Form 1040) Taxpayers who paid penalties for the premature withdrawal of funds from time savings accounts or deposits could deduct those penalties as an adjustment to total income.

Forms 1040, 1040A, 1040EZ, and 1040PC The individual income tax system utilizes three major forms to collect income and tax information: the 1040, 1040A, and 1040EZ. Variations of the three basic forms included 1040PC, 1040TEL, and electronic filing. Form 1040PC returns were generated by IRS-approved software on a personal computer, and were typically condensed versions of the standard paper forms.

Returns of all of these types were included in the population of returns subjected to sampling, and were classified by the guidelines for filing a standard form (i.e., Forms 1040, 1040A and 1040EZ), discussed below. For example, if a return was filed electronically that would have been a Form 1040EZ had it been filed on paper, it would have been considered a Form 1040EZ in the statistics. All 1040TEL returns were considered to have been Form 1040EZ for these statistics. All returns generated on a personal computer were classified as 1040PC regardless what standard forms they would have been classified under.

The forms represented different levels of complexity in regard to the information reported. The Forms 1040A and 1040EZ, for instance, could only be used if an individuals taxable income was less than $50,000, his other income came from only a limited number of sources, and the taxpayer did not itemize deductions. The Form 1040 had to be used if taxable income was greater than $50,000. In addition, the taxpayer had to file Form 1040 if he or she itemized deductions or had income (or losses) from a source not provided for on Form 1040A or 1040EZ, used certain tax provisions, or had certain other tax credits.

Gambling Loss Deduction (included in line 28, Schedule A) Gambling losses (to the extent of gambling winnings) were fully deductible for taxpayers who itemize deductions. (See also "Total Itemized Deductions.")

General Business Credit (line 44a, Form 1040) The general business credit consisted of the investment credit, the jobs credit, the alcohol fuel credit, the low-income housing credit, the research credit, the enhanced oil recovery credit, the disabled access credit, the renewable electricity production credit, the Indian employment credit, the credit for employer social security and Medicare tax paid on employee tips, and the community development corporation credit. Taxpayers claiming more than one of the credits were required to summarize them on Form 3800, General Business Credit. The general business credit was limited to 100 percent of the first $25,000 ($12,500 for a married couple filing separately) of tax liability and 75 percent of the excess over $25,000. If the current year general business credit exceeded the tax liability limitation, the excess amount could be carried back to the 3 preceding tax years, then forward 15 years.

Home Mortgage Interest Deduction (lines 10+11, Schedule A)

See "Interest Paid Deduction." Income Subject to Tax

See"Modified Taxable Income."

Income Tax After Credits [(line 40 minus line 45) minus part or all of line 56, Form 1040] To arrive at income tax after credits, taxpayers deducted total credits (line 45, Form 1040) from income tax before credits (line 40, Form 1040). For the statistics, tax was further reduced by the portion of the earned income credit which did not result in a negative tax. This portion of the earned income credit was included in the total credits as "earned income credit used to offset income tax before credits." Any tax remaining after subtraction of all credits and the earned income credit was tabulated as "income tax after credits."

Income Tax Before Credits (line 40, Form 1040) This amount consisted of the tax liability on taxable income, computed by using the tax tables, tax rate schedules, Schedule D Tax worksheet, Form 8615, or Form(s) 8814, plus any additional taxes (line 39). (See also "Tax Generated.")

Income Tax Withheld (line 54, Form 1040) Income tax withheld included amounts: deducted from salaries, wages, and tips, as reported on Form W-2; deducted from pensions, annuities, and certain gambling winnings as reported on Forms 1099-R and W-2G; and withheld from total distributions of profit-sharing, retirement plans, and individual retirement accounts, as reported on Form 1099-R. In some cases, a backup withholding rate of 31 percent was required for interest, dividend, and royalty payments which, generally, were not subject to withholding.

Individual Retirement Arrangement Deductible Payments (lines 23a and 23b, Form 1040) An individual retirement arrangement (IRA) is a savings program that allows a taxpayer to set aside money for retirement. Beginning in 1987, the deduction for IRA contributions was reduced or eliminated for taxpayers who were (or whose spouse was) covered by an employee retirement plan and whose adjusted gross income exceeded certain levels.(Nondeductible contributions were still allowed for such taxpayers.) Deductible contributions could be subtracted from the employees total income in arriving at adjusted gross income.

Contributions to an IRA (whether or not they were deductible) were limited to the lesser of: a) the individuals taxable compensation for the year, or b) $2,000 ($2,250 if a nonworking spousal IRA was included).

Unless they were disabled, taxpayers could not start withdrawing funds from the account until they reached age 59-1/2. After age 70-1/2 taxpayers were required to begin withdrawals. Penalty taxes were assessed if the taxpayer failed to comply with these limitations. Individuals could also set up an IRA to include a nonworking spouse who met certain qualifying conditions. The total IRA deduction, including both the taxpayer and the nonworking spouse, could not exceed $2,250. A spousal IRA deduction was tabulated in the statistics as "Secondary IRA payments."

Payments to an IRA for a particular taxable year had to be made no later than the due date of the individuals return for that year.

Individual Retirement Arrangement Taxable Distributions (line 15b, Form 1040) Any money or property received from a taxpayers IRA account was considered a distribution and, generally, had to be included in the taxpayers total income in the year received. Excepted from this rule were tax-free roll-over distributions from one retirement account to another, and distributions where the payout represented previously taxed non-deductible IRA contributions.

Interest Paid Deduction (line 14, Schedule A) The rules for deducting home mortgage interest for 1994 were: (1) if a taxpayer took out a mortgage before October 13, 1987, secured by the taxpayers main or second home, all the interest was deductible, (2) if the taxpayers mortgage was after October 13, 1987, and the funds were used to buy, build, or improve that home, all interest could be deducted if the total of all mortgages on the property was $1 million or less ($500,000 if married filing separately), and (3) taxpayers could deduct all of the interest on an additional $100,000 ($50,000 if married filing separately) of mortgages on their main or second home other than to buy, build, or improve that home.

Generally, investment interest (interest paid on money borrowed that is allocable to property held for investment) was fully deductible up to the amount of net investment income. Beginning in 1993, the net investment income that was to be compared to investment interest could not include any net capital gains taxed at the 28 percent maximum capital gain tax rate. Interest relating to business, royalty, and rental income was deducted directly from these items and was not reflected in the interest paid statistics.

Interest Received See "Taxable Interest Received."

Interest, Tax-Exempt See "Tax-Exempt Interest."

Investment Interest Expense Deduction (line 13, Schedule A) See "Interest Paid Deduction" and "Total Itemized Deductions."

Itemized Deductions See "Total Itemized Deductions" and specific itemized deductions.

Itemized Deduction Limitation See "Total Itemized Deductions."

Limited Miscellaneous Deductions (lines 20-26, Schedule A) Certain taxpayer expenses could be deducted on Schedule A, but were limited to the amount that exceeded 2 percent of adjusted gross income. These included: unreimbursed employee business expenses (including qualifying educational expenses), tax preparation fees, expenses paid to produce or collect taxable income, and expenses paid to manage or protect property held for earning income (including safe deposit boxes).

Long-Term Capital Gain or Loss (line 17, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Long-Term Gain or Loss from Other Forms (line 12, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Long-Term Loss Carryover (line 15, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Marginal Tax Rates Different portions of taxable income are taxed at different rates. The tax rate applied to the last dollar of income is called the "marginal tax rate" for that return. (See also "Tax Generated.")

Marital Filing Status (lines 1-5, Form 1040) The five marital filing status classifications were: (1) returns of single persons (not heads of household or surviving spouses); (2) joint returns of married persons; (3) separate returns of married persons; (4) returns of heads of household; and (5) returns of surviving spouses.

Marital filing status was usually determined as of the last day of the tax year. If ones spouse died during the tax year, the survivor was considered married for the entire year. If a taxpayer was divorced during the tax year and did not remarry, the taxpayer was considered to be unmarried for the entire year. Surviving spouse status could only be used by taxpayers with a qualifying dependent whose spouse died in 1992, 1993, or 1994.

Medical and Dental Expenses Deduction (lines 1-4, Schedule A) Qualified medical expenses included nonreimbursed payments made for the diagnosis, treatment, or prevention of disease or for medical or dental insurance. However, taxpayers who took the self-employed health insurance adjustment had to reduce their total premium deduction by the amount of the adjustment (see "Self-Employed Health Insurance"). In general, medical and dental expenses could be claimed as an itemized deduction to the extent that they exceeded 7.5 percent of adjusted gross income. Amounts paid for medicine and drugs were deductible only for items not available except by prescription or were for insulin. Taxpayers could deduct costs for transportation to obtain medical care and also a maximum of $50 per day for certain lodging expenses incurred while traveling to obtain medical care. (See also "Total Itemized Deductions.")

Minimum Tax Credit (line 44c, Form 1040) A minimum tax credit could be taken for 1994 by certain taxpayers who paid alternative minimum tax for 1993. If all of the minimum tax credit (claimed on Form 8801) could not be used for 1994, the excess could be carried forward to later years.

Miscellaneous Itemized Deductions (lines 20-26, 28, Schedule A) Miscellaneous itemized deductions were divided into two types. The first, such as employee business expenses, included those items that were limited to the amount that exceeded 2 percent of adjusted gross income, while the expenses of the other types, such as gambling losses not in excess of gambling winnings, were fully deductible. (See also "Gambling Loss Deduction" , "Limited Miscellaneous Deductions", and "Miscellaneous Deductions Other Than Gambling.")

Miscellaneous Deductions Other Than Gambling (included in line 28, Schedule A) Other fully deductible expenses included such items as impairment-related work expenses for disabled persons, and amortizable bonds. (See also "Miscellaneous Itemized Deductions" and "Total Itemized Deductions.")

Modified Taxable Income "Modified taxable income" is the term used to describe "income subject to tax," the actual base on which tax is computed for the statistics in Tables 3.4 and 3.5. For taxpayers filing current year returns, modified taxable income is identical to "taxable income."

For prior year returns included in the 1994 statistics, a modified taxable income was calculated by using the tax rate schedule to impute a hypothetical taxable income amount necessary to yield the given amount of tax reported.

A person who has no tax will have no modified taxable income. Since, the tax rate schedule is used to generate the modified taxable income, it is possible for a person to have up to four dollars of taxable income but have no modified taxable income because their tax reported would be zero.

Moving Expenses Adjustment D D (line 24, Form 1040) Starting in 1994, current-year moving expenses were not an itemized deduction on Schedule A. Taxpayers deducted current-year qualified moving expenses in the calculation of adjusted gross income as a statutory adjustment. In order to qualify for this deduction, the new work place had to be at least 50 miles farther from the former residence than the older.

Deductible expenses included those incurred to move household and personal goods, and travel including lodging en route to the new residence. Expenses no longer deductible included: meals while moving from the old residence to the new residence; travel expenses for pre-move house hunting trips; expenses while occupying temporary quarters in the area of the new job; and qualified residence sale, purchase, and lease expenses.

Moving Expense Deduction (line 27, Schedule A) If a taxpayer incurred moving expenses in a year before 1994, but did not deduct them on the prior year return, they may be able to take the deduction.

Net Capital Gain in AGI less loss See "Sales of Capital Assets, Net Gain or Loss."

Net Operating Loss (included in line 21, Form 1040) The excess loss of a business when AGI for a prior year was less than zero. The loss could be applied to the AGI for the current year and carried forward up to 15 years. (See also "Other Income.")

Nondeductible Passive Losses (CALCULATED ON FORM 8582) Nondeductible passive losses were calculated by subtracting deductible passive losses reported on Form 8582 (line 11) from total passive losses (lines 1b+2b) and were limited to zero.

Other Adjustments (included in line 30, Form 1040) See "Statutory Adjustments."

Other Income (line 21, Form 1040) Included in other income were items such as prizes, awards, sweepstakes winnings, gambling winnings, recoveries of bad debts, insurance received as reimbursement for medical expenses taken as a deduction in a previous year, and any other income subject to tax for which no specific line was provided on the return form. Any foreign earned income exclusions, or "net operating loss" in an earlier year (that was carried forward and deducted for 1994) was entered as a negative amount on this line by the taxpayer but edited into separate fields during service center processing.

Other Payments (line 59, Form 1040) See "Credit for Federal Tax on Gasoline and Special Fuels" and "Credit from Regulated Investment Companies."

Other Tax Credits (included in line 45, Form 1040) "Other tax credits" is a residual category in the statistics and does not relate to a line item on a tax form. It includes "credit for fuel from a nonconventional source" and other miscellaneous credits that did not belong in any other category and were used to offset income tax before credits.

Other Taxes Deduction (line 8, Schedule A) Other taxes consisted of any deductible tax other than state and local income taxes, real estate taxes, and personal property taxes. Examples of other taxes are taxes paid to a foreign country or U.S. possession. (See also "Personal Property Tax"and "Taxes Paid Deduction.")

Overpayment (line 61, Form 1040) An overpayment of tax occurred when "total tax payments" exceeded "total tax." Overpayments included the amount of any "refundable portion of the earned income tax credit." An overpayment could be refunded or credited toward the estimated tax for the following year. (See also "Credit to 1995 Estimated Tax" and "Refund.")

Overpayment Refunded (line 62, Form 1040) See "Overpayment" and "Refund."

Parents' Election to Report Childs Interest and Dividends (CALCULATED ON FORM 8814) A parent could report on his or her return income received by his or her child. If the election was made, the child was not required to file a return. A parent could make this election if the child: was under age 14 on January 1, 1995; had income only from interest and dividends; had gross income for 1994 that was more than $500 but less than $5,000; had no estimated tax payments for 1994; did not have any overpayment of tax shown on his or her 1993 return applied to the 1994 return; and had no Federal income tax withheld from his or her income (backup withholding). If the parents were not filing a joint return, special rules applied to determine which parent could make the election.

Partnership and S Corporation Net Income or Loss (line 31, Schedule E) Partnerships and S corporations (formerly Subchapter S corporations) were not taxable entities; therefore, tax on their net profit or loss was levied, in general, directly on the members of the partnership or shareholders of the S corporation. The profit or loss shown in the statistics was the taxpayers share of the ordinary gain or loss of the enterprise, and certain payments made to the taxpayer for the use of capital or as a salary. Net long-term capital gains received from partnerships and S corporations were reported on Schedule D.

If a return showed net income from one partnership or S corporation and a net loss from another, the two were added together, and the return was tabulated by the net amount of income or loss in the appropriate column. Beginning in 1987, net income and net loss were reported separately for passive and non-passive partnership and S corporation activities. Passive losses were limited under new rules to the amount that could offset passive income.

Passive Activity Losses Losses generated by any "flow-through" business activity (such as partnerships or S Corporations for which profits and certain other amounts were passed directly through to the owners), in which the taxpayer did not "materially participate" (i.e., was not involved regularly and substantially in the operations of the activity) qualified as passive activity losses.

Payment with Request for Extension of Filing Time (line 57, Form 1040) This payment was made when the taxpayer filed Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, or Form 2688, Application for Additional Extension of Time to File. The extension granted the taxpayer an additional period of time to file a tax return, but did not extend the time for the payment of the expected tax. Full payment of any tax due had to be made with the application for extension.

Payments to a Keogh Plan (line 27, Form 1040) Self-employed individuals were allowed to contribute to a Keogh retirement plan or a simplified employment pension plan for themselves and to deduct all or part of such contributions in computing adjusted gross income. The amount which could be deducted was based on net earnings from self- employment.

Penalty Tax on Qualified Retirement Plans (line 51, Form 1040) If taxpayers withdrew any funds from an Individual Retirement Account or qualified retirement plan before they were either age 59-1/2 or disabled, they were subject to a penalty tax equal to 10 percent of the premature distribution. Any taxpayer who failed to withdraw the minimum required distribution after reaching age 70-1/2 had to pay a 50 percent excise tax on the excess accumulation. Contributions to the retirement plans in excess of the legal limitation for the year (the lesser of $2,000 or the taxpayers compensation for the year) were subject to an excise tax equal to 6 percent of the excess contribution.

Pensions and Annuities (lines 16a, 16b, Form 1040) Generally, pensions are periodic income received after retirement for past services with an employer, while annuities are income payable at stated intervals after payment of a specific premium. A taxpayer could acquire a pension or annuity either by purchase from a commercial organization (usually life insurance, endowment, or annuity contracts) or under a plan or contract connected with the taxpayers employment. Those pensions or annuities obtained in connection with employment could be purchased entirely by the taxpayer or could be financed in part (a contributory plan) or in whole (a non-contributory plan) by contributions of the employer.

Since a non-contributory plan was paid for entirely by an employer, the amount received by the employee was fully taxable. This fully taxable pension was reported on lines 16a and 16b. For the taxpayer who participated in a contributory retirement plan while employed, the amount received was only partially taxable. In general, the amount excludable from gross income, the nontaxable portion, represented the taxpayers contributions under the plan, while the taxable portion represented the employers contribution and earnings on the entire investment. The nontaxable contribution had to be amortized over the expected lifetime of the taxpayer.

The entire amount of pensions and annuities received for the year was reported on line 16a of the Form 1040. The taxable portion was computed on a separate worksheet and entered on line 16b.

Personal Property Taxes Deduction D D (line 7, Schedule A) For 1994, personal property taxes deduction was on its own line, prior to 1994 it was included with other taxes. Personal property tax could be included as a deduction if the tax was an annual tax based on value alone. (See also "Taxes Paid Deduction.")

Predetermined Estimated Tax Penalty (line 65, Form 1040) If a return showed taxes of $500 or more owed on line 64 (tax due at time of filing) and this amount was more than 10 percent of the total tax, the taxpayer could owe a penalty, unless tax payments in the current year equaled or exceeded prior-year tax liability (provided prior year liability was greater than zero). Also, taxpayers could owe a penalty if they underpaid their 1994 estimated tax liability for any payment period. Form 2210 was used to determine the amount of a penalty, if any.

For this report, the predetermined estimated tax penalty includes only the amount calculated by the taxpayer when the return was initially filed.

Primary IRA Payments (line 23a, Form 1040) See "Individual Retirement Arrangement Deductible Payments."

Real Estate Taxes (line 6, Schedule A) This amount included taxes paid on real estate that was owned and not used for business by the taxpayer. The real estate taxes could only be used as a deduction if the taxes were based on the assessed value of the property. Also, the assessment had to be made uniformly on property throughout the community, and the proceeds had to be used for general community or governmental purposes. (See also "Taxes Paid Deductions.")

Recapture Taxes (line 49, Form 1040) See "Tax from Recomputing Prior Year Investment Credit."

Refund (line 62, Form 1040) A refund of tax included all overpayment of income taxes not applied by the taxpayer as a credit to the next years estimated tax. (See also "Overpayment.")

Refund Credited to Next Year (line 63, Form 1040) See "Credit to 1995 Estimated Tax."

Regular Tax Computation Typically, the taxpayer, in determining the amount of "tax generated," first computed taxable income. Depending on marital status and size of taxable income, the taxpayer then used the tax tables or applied the rates from one of four tax rate schedules to determine tax. Returns of taxpayers who had taxes computed by the Internal Revenue Service were classified under the regular tax computation method.

Rent and Royalty Net Income or Loss (lines 24-25, Schedule E) This amount was the combination of rent net income, rent net loss, royalty net income, and royalty net loss. This amount did not include passive losses that were not deductible, but included carryovers of previous years' passive losses. (See also "Passive Activity Losses.")

Rent Net Income or Loss (line 22, columns A, B, C, Schedule E) Rent net income or loss was determined by deducting from gross rent, the amounts for depreciation, repairs, improvements, interest, taxes, commissions, advertising, utilities, insurance, janitorial services, and any other allowable expenses related to the rented property. In the statistics, total rental net loss includes passive losses that were not deductible in figuring AGI. (See also "Passive Activity Losses.")

Royalty Net Income or Loss (line 22, columns A, B, C, Schedule E) Net royalties consisted of gross royalties less deductions for depletion, depreciation, office rent, legal fees, clerical help, interest, taxes, and similar items. Gross royalties included revenues from oil, gas, and other mineral rights; revenue from patents; and revenue from literary, musical, or artistic works. Certain royalties received under a lease agreement on timber, coal, and domestic iron ore were eligible for capital gains or ordinary loss treatment under Code section 1231. As a result of the separate computation, those royalties are reflected in the statistics for "sales of capital assets" and "sales of property other than capital assets."(See also "Total Rent and Royalty Income or Loss in AGI.")

S Corporations See "Partnership and S Corporation Net Income or Loss."

Salaries and Wages (line 7, Form 1040) Salaries and wages as reported on the tax return were amounts of compensation primarily for personal services. The following items are included: salaries; wages; commissions; bonuses; tips; fees; excess reimbursement of employee business expenses; moving expenses allowances; the difference between the fair market value of certain property and the discount price for which it was purchased by a taxpayer from his or her employer; severance pay; sick pay; the value of exercising a stock appreciation right; directors fees; vacation allowances; most disability payments; strike and lockout benefits; and the value of certain non-monetary payments for services (e.g., merchandise, accommodations, certain meals or lodging, certain stock purchase plans, or property). Identifiable amounts for any of these categories which may have been reported by taxpayers as "other income" are treated as salaries and wages for the statistics.

Sales of Capital Assets, Net Gain or Loss (line 13, Form 1040) In general, capital assets for tax purposes included all property held for personal use or investment. Examples of such assets were personal residences, furniture, automobiles, and stocks and bonds. Most assets used for business activities were specifically excluded from treatment as capital assets. (See also "Sales of Property Other Than Capital Assets, Net Gain or Loss.")

The following concepts are used in the computation of net capital gain or loss for this report: Long-term or short-term: If the holding period was one year or less the asset was considered short- term; otherwise it was considered long-term. Net capital gain: If the combination of net short-term gain or loss and net long-term gain or loss resulted in a positive amount, the taxpayer had a net capital gain. The full amount of this gain, whether short-term or long-term was included in adjusted gross income. Net capital loss: If the combination of net short-term gain or loss and net long-term gain or loss resulted in a negative amount, the taxpayer showed a net capital loss. The amount of net capital loss to be included in adjusted gross income was limited to the smaller of the actual net capital loss or $3,000 ($1,500 for married persons filing separately). Any excess capital losses over the $3,000 limit could be carried over to subsequent tax years ("capital loss carry-over" in the statistics).

Net capital gain or loss also included capital gain distributions which were not reported on Schedule D (Capital Gains and Losses). These capital gain distributions were entered directly on line 14 of Form 1040 if the taxpayer did not have any other gains or losses to report on Schedule D. These distributions were, by definition, long-term capital gains. (See also "Capital Gain Distributions Reported on Form 1040.")

Sales of Capital Assets Reported on Schedule D See "Sales of Capital Assets, Net Gain or Loss."

Sales of Property Other Than Capital Assets, Net Gain or Loss (line 14, Form 1040) Property other than capital assets generally included property of a business nature, in contrast to personal or investment property, which were capital assets. Some types of property specifically included in this group were: (1) certain depreciable, depletable, and real business property; (2) accounts and notes receivable in the ordinary course of business generated from the sale of goods and services ordinarily held for sale by the business or includable in the inventory of the business; (3) certain copyrights, literary, musical, or artistic compositions, or similar properties; and (4) amounts resulting from certain "involuntary conversions," including net losses from casualty and theft.

Taxpayers reported all gains and losses not treated as capital gains on Form 4797, Sales of Business Property.

Schedule D Gain Subject to 28 Percent Tax Rate See "Tax Generated."

Secondary IRA Payments (line 23b, Form 1040) See "Individual Retirement Arrangement Deductible Payments."

Self-Employed Health Insurance Deduction D D (line 26, Form 1040) The provision that allowed self-employed persons, or owners of more than 2 percent of outstanding stock of an S corporation, to deduct, in the calculation of AGI, up to 25 percent of the amount paid for health insurance for themselves and their families expired on December 31, 1993. A bill was signed on April 11, 1995 restoring the provision retroactively to January 1, 1994. Taxpayers who had already filed their 1994 returns had to file an amended return if they wished to take advantage of the deduction. Amended returns, however, are not reflected in the statistics. (For more information on amended returns, see Section 2, Description of the Sample.)

Self-Employment Tax D D (line 47, Form 1040) The ceiling on taxable self-employment income for 1994 was $60,600 ($57,600 for 1993). All net earnings greater than $400 ($108.28 for church employees) was subject to the Medicare tax portion (there was a $135,000 limit in 1993). (See also "Total Tax Liability.")

Short-Term Capital Gain or Loss (line 8, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Short-Term Gain or Loss from Other Forms (line 4, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Short-Term Loss Carryover (line 6, Schedule D) See "Sales of Capital Assets, Net Gain or Loss."

Size of Adjusted Gross Income (line 31, Form 1040) The amount of adjusted gross income reported by the taxpayer on the return was the basis for classifying data by size of adjusted gross income. Returns without positive adjusted gross income, such as deficit returns or returns on which income and loss were equal, were classified as having "no adjusted gross income" and appear as a separate class in most basic tables. The absence of a class labeled "no adjusted gross income" indicates that any deficit or break-even returns in a table were included in the lowest income size class.

Social Security Benefits D D (lines 20a, 20b, Form 1040) Social security benefits included any monthly benefit under title II of the Social Security Act or the part of a "tier 1 railroad retirement benefit" that was equivalent to a social security benefit. Social security benefits were not taxable unless the taxpayers total income (including tax-exempt interest) plus one-half of total social security benefits exceeded certain levels. The maximum taxable amount was up to 85% of the net social security benefits received. Social security benefits received were reported on Form 1040, line 20a and the taxable portion was reported on line 20b. Taxpayers who had no taxable benefits were not supposed to show the total benefits on their income tax returns.

Social Security and Medicare Tax on Tip Income (line 50, Form 1040) Cash tips amounting to $20 or more received by the taxpayer in a month while working for any one employer were subject to withholding of income tax, social security tax (or the equivalent railroad retirement tax), and Medicare tax. If the employer was unable to withhold the social security and Medicare tax, the amount of uncollected social security tax on tips was indicated on the employees Form W-2, and the employee was required to report the uncollected tax and pay it with the Form 1040. If the employee did not report the tips to the employer, the employee was required to compute the social security and Medicare tax on unreported tips on Form 4137 and attach it to Form 1040.

Standard Deduction D D (included in line 34, Form 1040) For 1994, the basic standard deduction was increased. Taxpayers who were age 65 or over or blind could claim an additional standard deduction amount of $750 or $950. Both the basic and additional standard deductions were determined by marital filing status, as shown below.

Single Basic deduction of $3,800; Each taxpayer 65 or over or blind was allowed an additional $950 deduction each for age and blindness.

Married filing jointly or surviving spouses Basic deduction of $6,350; Each taxpayer 65 or over or blind was allowed an additional $750 deduction each for age and blindness.

Married, filing separately Basic deduction of $3,175; Each taxpayer 65 or over or blind was allowed an additional $750 deduction each for age and blindness.

Head of Household Basic deduction of $5,600; Each taxpayer 65 or over or blind was allowed an additional $950 deduction each for age and blindness.

In the statistics, the basic standard deduction is tabulated for all taxpayers who claimed it, including those who were 65 or over and/or blind. The "additional standard deduction" total includes only the additional amount that was taken by those taxpayers who were 65 or over and/or blind.

State Income Tax Refund (line 10, Form 1040) If a taxpayer received a refund, credit, or offset of state or local income taxes in 1994 that was paid or deducted before 1994, all or part of that amount had to be reported as income to the extent that an itemized deduction for state and local taxes had previously resulted in a tax benefit.

State and Local Income Taxes (line 5, Schedule A) Taxes paid could be used as an itemized deduction if a taxpayer had state and local income tax withheld from their salary during 1994; had paid state and local income taxes directly during 1994 for a prior year, or had made mandatory contributions to specific state disability funds. (See also"Taxes Paid Deduction.")

Statutory Adjustments (lines 23-30, Form 1040) Certain adjustments to total income were allowed as deductions in the calculation of adjusted gross income. For 1994, statutory adjustments included payments to a self-employed Keogh retirement plan or a simplified employee pension (SEP), forfeited interest penalty, payments to an IRA, alimony paid, the self-employed health insurance deduction, the deduction for one-half of self-employment tax, and the foreign housing deduction. Each of the above items is described separately in this section. In addition, statutory adjustments included jury duty pay received by the taxpayer and given to the employer if the taxpayer continued to receive wages while on jury duty, the forestation/reforestation amortization deduction, and the repayment of supplemental unemployment benefits under the Trade Act of 1974. These amounts are included in the "Other Adjustments" category in the statistics.

Tax Due at Time of Filing (line 64, Form 1040) "Tax due" was reported on returns on which total tax liability exceeded total tax payments.

Tax from Recomputing Prior-Year Investment Credit (line 49, Form 1040) The investment tax credit provisions of the law included a recapture rule which required taxpayers to pay back some or all of any investment credit previously taken on property disposed of before the end of the useful life claimed in computing the credit. The law specified that if property qualifying for the credit was disposed of before the end of its useful life, the tax for the year of disposal was increased by the difference between the credit originally claimed and the credit that would have been allowed based on the shorter actual life. Tax credits could not be applied against this additional tax.

Tax Generated D D (line 38, Form 1040) This amount was the tax computed on modified taxable income. For 1994, there were five basic tax rates, 15, 28, 31, 36, and 39.6 percent. Long-term capital gains (in excess of short-term capital losses) were subject to a maximum tax rate of 28 percent. The 15-percent bracket applied to taxable income equal to or below $22,750 for single filers; $38,000 for joint filers or surviving spouses; $19,000 for married persons filing separately; and $30,500 for heads of household. The 28 percent tax bracket applied to taxable income in excess of the 15 percent bracket ceiling and equal to or below $55,100 for single filers; $91,850 for joint filers or surviving spouses; $45,925 for married persons filing separately; and $78,700 for heads of household. The 31 percent tax rate applied to taxable income in excess of the 28 percent tax bracket ceiling and equal to or below $115,000 for single filers; $140,000 for joint filers or surviving spouses; $70,000 for married persons filing separately; and $127,500 for heads of households. The 36 percent tax rate applied to taxable income in excess of the 31 percent tax bracket ceiling and equal to or below $250,000 for single filers, joint filers, or surviving spouses and heads of households and $125,000 for married persons filing separately. The 39.6 percent tax rate applied to taxable income in excess of the upper boundary for the 36 percent tax bracket. The tax generated at each of these tax rates is shown in Tables 3.4 and 3.5.

If children under age 14 had investment income that exceeded $1,200, there were two methods of reporting this income. If the child filed his or her own return, the investment income that exceeded $1,200 was taxed at the parents rate on Form 8615 (the remaining investment income was taxed at the child's rate) and tabulated separately in Tables 3.4 and 3.5. If the parents elected to report the childs investment income on their return, they attached a Form 8814. The investment income in excess of $1,000 was included on Form 1040, line 22. The remaining investment income in excess of the $500 standard deduction was taxed at the childs rate (15 percent), added to the parents tax on Form 1040, line 38, and is also tabulated separately in Tables 3.4 and 3.5.

On most returns, except those with additional taxes from special computations, "tax generated" equaled "income tax before credits." (See also "Modified Taxable Income.")

Tax Payments D D (lines 54, 55, 57-60, Form 1040) These payments were generally made before the return was filed and were applied against tax liability to determine any amount payable or refundable at the time of filing. They consisted of the following: (1) income tax withheld, including backup withholding; (2) estimated tax payments (including those from overpayment on 1993 return); (3) payment with request for extension of filing time; (4) excess social security, Medicare, or railroad retirement tax withheld; (5) credit for tax on certain gasoline, fuel, and oil; (6) credit from regulated investment companies.

Each of the above is described under a separate heading in this section. Although the earned income credit was included with tax payments on the tax return itself (line 56, Form 1040), for the statistics it is treated partly as a credit against income tax liability and partly as a refundable amount. (See also "Earned Income Credit.")

Tax Penalty (line 65, Form 1040) See "Predetermined Estimated Tax Penalty."

Tax Preparation Fees (line 21, Schedule A) Tax preparation fees were included on Schedule A as a miscellaneous deduction, the total of which was subject to a 2 percent of AGI limitation. The amounts reported in the statistics were tabulated prior to this limitation. (See also "Limited Miscellaneous Itemized Deductions.")

Tax Rates, Tax Rate Classes See "Tax Generated."

Tax Withheld (line 54, Form 1040) See "Income Tax Withheld."

Tax-Exempt Interest (line 8b, Form 1040) Tax-exempt interest included interest on certain State and municipal bonds, as well as any tax-exempt interest dividends from a mutual fund or other regulated investment company. This was an information reporting requirement and did not convert tax-exempt interest into taxable interest.

Taxable and Nontaxable Returns The taxable and nontaxable classification of a return for this report is determined by the presence of "total income tax" (the sum of income tax after credits and the alternative minimum tax). Some returns classified as "nontaxable" may have had a liability for other taxes, such as self-employment tax, Railroad Retirement Tax Act (RRTA), social security or Medicare taxes on tip income, uncollected employee social security tax on tips, tax from Recomputing prior-year investment credit, penalty taxes on individual retirement accounts, Section 72 penalty taxes, advance earned income credit payments, or golden parachute payments. These taxes, however, were disregarded for the purposes of this classification since three of the above taxes were considered social security (rather than income) taxes, and the remaining ones, except for advance earned income payments, were either based on prior years income or were penalty taxes.

For this report, the earned income credit is treated first as an amount used to offset income tax before credits. Since the earned income credit was refundable, it was subtracted from income tax (for the statistics) after reduction by all other statutory credits. As a result, some returns became nontaxable strictly because of the earned income credit if there was no alternative minimum tax and the earned income credit equaled or exceeded income tax before credits reduced by any other credits.

It should be noted that classification as taxable or nontaxable was based on each return as it was filed and does not reflect any changes resulting from audit or other enforcement activities.

Taxable Income (line 37, Form 1040) Taxable income was derived by subtracting from adjusted gross income any exemption amount and either total itemized deductions or the standard deduction. On current year returns, "taxable income" was identical to "modified taxable income."

Taxable Interest Received (line 8a, Form 1040) This amount was the taxable portion of interest received from bonds, debentures, notes, mortgages, certain insurance policy proceeds, personal loans, bank deposits, savings deposits, tax refunds, and U.S. savings bonds. Also included as interest were "dividends" on deposits or withdrawable accounts in mutual savings banks, savings and loan associations, and credit unions. These amounts could, in some circumstances, include a childs income which was to be taxed at the parents rate. Interest on state or local government obligations remained tax-exempt, but the total tax-exempt interest had to be reported on line 8b of Form 1040. It was not included in the taxpayers income for tax purposes. (See also "Tax-Exempt Interest.")

Taxable IRA Distributions (in AGI) (line 15b, Form 1040) See "Individual Retirement Arrangement Taxable Distributions."

Taxable Pensions and Annuities (in AGI) (line 16b, Form 1040) See "Pensions and Annuities."

Taxable Social Security Benefits (received) (line 20b, Form 1040) See "Social Security Benefits."

Taxes Paid Deduction (lines 5-9, Schedule A) Taxes allowed as an itemized deduction from adjusted gross income, included personal property taxes, state and local income taxes, taxes paid to foreign countries or U.S. possessions (unless a foreign tax credit was claimed), and real estate taxes except those levied for improvements that tended to increase the value of the property. Mandatory employee contributions to a state disability fund and employee contributions to a state unemployment fund were also included. Federal taxes were not deductible.

Taxes paid on business property were deducted separately on the schedules for business, rent, royalty, and farm income and were excluded from the "taxes paid" statistics in this report.

Total Income (line 22, Form 1040) Total income was the sum of the individual income items (lines 7 through 21) before adjustments.

Total Income Tax (line 46 + line 48 - line 56, limited to zero, on Form 1040) Total income tax was the sum of income tax after credits (including the subtraction of the earned income credit) and the alternative minimum tax. It did not include any of the other taxes which made up total tax liability. Total income tax was the basis for classifying returns as taxable or nontaxable.

Total Itemized Deductions D D (included in line 34, Form 1040) Itemized deductions from adjusted gross income could be claimed for medical and dental expenses, taxes paid, interest paid, contributions, casualty and theft losses, moving expenses, and miscellaneous deductions. Itemized deductions were claimed only if they exceeded the total standard deduction, with two exceptions. First, if a taxpayer was married and filing separately, and he or she itemized deductions, the spouse was required to itemize as well. Second, taxpayers in several states were required to itemize deductions on their Federal tax returns if they wish to itemize on their State returns. The total amount of itemized deductions was tabulated only from returns showing positive adjusted gross income.

If a taxpayer had AGI in excess of $111,800 ($55,900 if married filing separately), his or her itemized deductions may have been limited. The limitation did not apply to the deductions for medical and dental expenses, investment interest expenses, casualty or theft losses, and gambling losses. To arrive at allowable itemized deductions, total itemized deductions were reduced by the smaller of: a) 80 percent of the non-exempt deductions, or b) 3 percent of the amount of AGI in excess of $111,800 ($55,900 for married filing separately). Therefore, total itemized deductions was the sum of the separate deductions cited above, less the itemized deduction limitation.

Total Miscellaneous Deductions See "Miscellaneous Itemized Deductions."

Total Rent and Royalty Income or Loss (line 26 plus line 39, Schedule E) This income concept consisted of all rent and royalty income and loss which was used in computing adjusted gross income, including farm rental income and suspended rental loss carry-over from prior years. It excluded that portion of rental losses which was not deductible in computing adjusted gross income due to the passive loss rules.

Total Statutory Adjustments (line 30, Form 1040) Total statutory adjustments was the sum of the individual adjustments to income (lines 23a-29).

Total Tax Credits (lines 45, 56, Form 1040) For this report, total tax credits consists of the following: 1) child care credit; 2) credit for the elderly and disabled; 3) foreign tax credit; 4) general business credit; 5) minimum tax credit; 6) earned income credit (EIC) used to offset income tax before credits; 7) mortgage interest credit; and 8) other tax credits.

These amounts were deducted from income tax before credits to arrive at income tax after credits. For the statistics, the portion of the EIC which did not result in a negative amount was tabulated as "earned income credit used to offset income tax before credits." Any remaining EIC amount could be refunded or applied to other taxes, and was classified separately as "earned income credit refundable portion," or "earned income credit used to offset other taxes." All other credits were limited to the amount needed to offset income tax before credits and were not refundable or used to offset any other taxes.

Total Tax Liability (line 53 modified by the earned income credit, Form 1040) Total tax liability was the sum of income tax after credits, the alternative minimum tax, self- employment tax, social security and Medicare tax on tips, tax from recomputing prior-year investment credits, taxes from individual retirement accounts, Section 72 penalty taxes, and tax on golden parachute payments. These taxes were then reduced by the earned income credit used to offset all other taxes (defined under "Earned Income Credit). For the statistics, unlike the Form 1040, total tax liability does not include any advance earned income credit payments.

Type of Tax Computation (line 38, Form 1040) Tabulations in Table 3.1 include three methods of computing the tax on income subject to tax. These methods were: (1) regular tax, as computed from the tax tables or tax rate schedules accompanying the Forms 1040, 1040A, or 1040EZ (see also "Regular Tax Computation"); (2) Form 8615, used to compute the tax on investment income of children under 14; and (3) Schedule D, Form 1040, used to compute the 28 percent tax on long-term capital gains (in excess of short-term capital losses.)

Unemployment Compensation (line 19, Form 1040) All unemployment compensation received was taxable. It did not include any supplemental unemployment benefits received from a company-financed supplemental unemployment benefit fund, which were included in salaries and wages.

Unreimbursed Employee Business Expenses (line 20, Schedule A) This item, added together with most other miscellaneous itemized deductions, was subject to a floor of 2 percent of AGI. Unreimbursed employee business expenses included travel, transportation, meal, and entertainment costs incurred while based at or away from home in the performance of job duties. Fifty percent of meal and entertainment expenses were deductible, and were calculated on Form 2106, Employee Business Expenses. Many other expenses such as union dues, safety equipment, uniforms, protective clothing, and physical examinations were also deductible. Travel expenses away from home which were paid or incurred were not deductible if the period of temporary employment was more than one year. The amounts reported in the statistics were tabulated prior to the 2 percent limitation. (See also "Limited Miscellaneous Itemized Deductions.")



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These tables are based on figures supplied by the United States Census Bureau, U.S. Department of Commerce and are subject to revision by the Census Bureau.

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