New statistics from the Internal Revenue Service indicate that 20,752 taxpayers with adjusted gross incomes of $200,000 or more in 2009 had no U.S. income tax liability.
Those 20,752 taxpayers represent only 0.529 percent of the nearly 4 million tax returns for those with AGI of $200,000 or more. The statistics also indicated that 10,080 taxpayers with $200,000 or more in AGI, or 0.257 percent, showed no worldwide income tax liability.
Those numbers represented a change from the previous year.
“For 2008, as revised to reflect refundable credits, of the 4,375,660 returns with AGI of $200,000 or more, 22,257 returns (0.509 percent) had no U.S. income tax liability, and 12,326 returns (0.282 percent) had no worldwide income tax liability,” wrote Justin Bryan in the spring 2012 edition of the IRS’s quarterly Statistics of Income Bulletin. “For 2009, of the 3,975,288 tax returns with expanded income of $200,000 or more, 35,061 (0.882 percent) had no U.S. income tax liability; and 19,551 (0.492 percent) had no worldwide income tax liability. For 2008, of the 4,416,986 returns with expanded income of $200,000 or more, there were 31,539 (0.714 percent) with no U.S. income tax liability and 17,127 (0.388 percent) with no worldwide income tax liability.”
19 Comments
Fair Tax, should please any party. It's progressive, yet easy on the low income. The payroll tax is very regressive, why aren't we replacing it with something better - called the FAIR TAX. I'm sick of IRS and other Depts of Rev notices and threats. Why do we have a tax code that no one can truly understand, all it serves to do is make criminals out of people who are trying to comply.
www.FairTax.org
Posted by: Taxpreparer | May 31, 2012 6:28 PM
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Taxbuster 1040,
"We Republican lackeys" didn't slam Obama. 17 comments and one mention of Obama besides yours. Therefore, you may want to indicate it was a Republican lackey (singular) slammed Obama, yes it is Obama, not O'bama by the way.
From my reading of the comments, you appear to be the only one getting worked up.
Sales taxes are not a hidden tax to anyone. I believe that "rich" people are subject to them as well as real estate taxes.
If you call yourself a socialist, who am I to disagree?
Posted by: JimM22 | May 31, 2012 5:38 PM
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Nobody mentioned how much of the taxpayers' income was from Tax Free Bonds.
Posted by: dick huchison | May 31, 2012 3:24 PM
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Why do some people completely miss the real story? To me, here's that story: In 2008, there were 4,375,660 returns with AGI of $200,000 or more. In 2009, there were 3,975,288 returns with AGI of $200,000 or more. That's a decrease of 400,372 returns of that class, 9.14% of job-creating "rich" folks. Let's see, now, Obama took over in 2009..................... The Democrats won't vote on a budget........................ The Clinton tax rates are looming, holding the economy hostage.............. Yeah, Taxbuster1040, facts are indeed stubborn.
Posted by: taxbite | May 31, 2012 12:51 PM
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Replace the income, payroll, and estate tax with the FairTax and NOBODY will pay income tax. Then we accountants can practice accounting instead of being collection agents for Uncle Sam.
Posted by: JAMADDEN | May 31, 2012 12:08 PM
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I agree the article can be misleading. I have never prepared a tax return for a tax payer with AGI of 200K that had no tax liability. .5% is not that much of the general population and as others have stated, the article mentions nothing about deductions, capital losses and other items that can reduce a tax payers liability.
Posted by: jmptax | May 31, 2012 11:53 AM
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Well, I had to comment on you republican lackeys. I get really tired of hearing you boys defend the indefensible. You need to get out of your bubble, Really. The only point of the story is a statistical one. Facts are stubborn things, aren't they? What you want to talk about is why it is ok that some very rich people get the benefit of living in this great country and not pay any income tax. Of course, our tax code allows this. But you can't miss an oportunity to slam O'bama. This article has nothing to do with him. The real question is why you get so worked up when the "facts" are reported. Are you ashamed of them? Should very rich people pay no income tax. I say no. Especially since it is their lobyists that caused them to pay no tax. Middle class and poor people have no lobyists, so I am speaking for them. They make up 99% of the population and when THEY pay not income tax, you guys go crazy!. Oh yeah, I forgot, they aren't the JOB CREATORS, LOL..... If you took basic economics you would know that everyone in America, even poor people create jobs when they spend their dollars. So take that i your pipe and smoke it. I wont even go into all the hidden taxes they pay like sales tax, inflation of their dollars, real estate taxes that their landlords submit for them. So I hope this has shed a little light for you that you rich republicans are not the only people in America who matter. We all do. If you really loved America, you wouldnt mind putting your money where your mouth is and paying a higher rate of tax so we all can live better. Yeah I know, I am a dirty socialist.....lol......
Posted by: taxbuster1040 | May 31, 2012 10:54 AM
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This is misleading for two reasons: AGI does not take into account itemized deductions. Catastrophic medical expenses, charitable giving and casualty losses can effectively eliminate taxable income. This statistic gives only half the story distorting higher income taxpayers into tax monsters. Second, 200K AGI is a high income taxpayer in the central states. High income tax states like CA, NY, IL - 200K for a family of three or four is subsistence wages. "Talking heads" need to get a reality check.
Posted by: M. Debra R | May 31, 2012 10:44 AM
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Statistical Reports such as this have become nothing more than a platform to mislead. It's a shame that folks can actually make a living creating bs like this. Never forget, it takes an accumulation of assets to create most jobs - the poor do not typically create jobs - they do not have the means in most cases. I know several high wealth individuals who haven't paid taxes in a long time - their privately owned companies have been loosing money EVEN THOUGH hundreds of us regular folks get a W-2 every year reflecting income. We should be careful what we wish for.
Posted by: mickey6329 | May 31, 2012 10:06 AM
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I see all the time that they(the government) use amounts like this($200,000) to say is high income but that not true. They use these amounts for a way of increasing taxes but in fact most of these people who are earning this amount is due to investing an or business.
Instead of increase taxes why don't they help all people get into business and we would not have a problem with people pay their fair share.
Everyone in this country can start and operate thier own business.
Posted by: taxesdonerightinc | May 31, 2012 10:03 AM
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I have a bigger concern with $200,000 being "high-income taxpayers". The incentive to be productive is lowered when such a low floor is established. If the Bush tax cuts are eliminated, "high-income" will net to "low-income".
Posted by: BEAR71 | May 31, 2012 9:51 AM
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or maybe they were elderly people with large medical bills
perhaps people would be happier if medicaid had paid out
200,000 rather than they get a medical deduction i agree
with the others these reports are such drivel the authors
should be ashamed
Posted by: ohpcpa | May 31, 2012 9:42 AM
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Towsonite, the report actually gives statistics for both those with AGI of $200,000 or more, and those with "expanded income" of $200,000 or more.
Posted by: MikeCohn | May 30, 2012 1:43 PM
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Actually, the article is misleading. They did not use AGI, but "Expanded Income" and "expanded income is AGI plus tax-exempt interest, nontaxable Social Security benefits, the foreign-earned income exclusion, and items of "tax preference" for "alter-native minimum tax" purposes; less unreimbursed employee business expenses, moving expenses, investment interest expense to the extent it does not exceed investment income, and miscellaneous item-ized deductions not subject to the 2-percent-of-AGI floor." So, go figure, is it shocking to anyone that less than 1% of those with more than $200k under this definition may not pay any income taxes? Nonetheless, those using this crafted report for their campaigns will gloss over the details for their political purposes of skewering the rich who "aren't paying their fair share".
Posted by: Towsonite | May 30, 2012 1:38 PM
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I am a CPA with clients that have AGI over 200,000 and paid no tax. All of these actually had taxable income and it was not offset by NOL's etc. They paid no tax because of the zero tax rate on capital gains and qualified dividends
Posted by: KevingCPA | May 30, 2012 12:37 PM
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I think these are mainly people with NOL's to carryforward or those who cashed out securities at a loss.
Posted by: cheryltbarnes | May 30, 2012 11:18 AM
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These reports only serve to mislead the public. It's obvious that this 1/2 percent had NOL carry-overs, adoption credits, capital losses, etc.
Posted by: mba_ca | May 30, 2012 10:58 AM
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Actually, there is a big point in articles like this, these statistics will now become sound bites that Obama and his crew will use to push raising taxes on those who actually work. What we we need now is a follow up article on how many lower income people had no tax liability but received large checks as "refunds" and how much was paid out in EITC, but good luck getting that published. We "owe" it to these people who don't want to work.
Posted by: jsmithdta | May 30, 2012 10:54 AM
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So what's the big deal. There are such things as mortgage interest and charitable contribution deductions. How about education and child tax credits and dependent exemptions? There is no point in articles like this.
Posted by: perryg@avauntltd.com | May 30, 2012 9:52 AM
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