Tax paying is on everyone’s mind, rarely in a good way. But having the knowledge about some pithy facts about your tax system and how you can fit well in it may not make you fell any better. Still, as you embark on your own annual tax odyssey you might be a bit surprised about who pays what, who doesn’t pay and how you fit in according to the recent IRS statistics. So here are some very vital and surprising facts about taxes which can help you in paying up your share.
1. The IRS receives around 140 million individual tax returns and collects over $950 billion taxes.
2. The largest tax deductions are those for taxes paid to state and local governments. Next biggest are for interest, especially on home mortgages.
3. The average tax refund is almost $3000. In all, over $325 billion tax refunds are paid out. Tax refunds are great, but they really suggest you were having too much withholding taken out of your pay or you made estimated tax payments that were too large.
4. You compute your regular tax and your AMT and pay whichever is more. Despite recent reforms, AMT plagues taxpayers. A lot of things such as attorney fees are deductible for regular tax but not for AMT. That hurts
5. Want to be in the top 1% earners list? Then you will need $369,509 of annual income to join that group. If your aim is to be in the top 10% of income earners, then you will need $116,555. This means that 90% of taxpayers make less.
6. Making a million dollars is a nice goal, but roughly 7,000 millionaires didn’t pay any income tax in 2011. In all over 275,000 returns showed adjusted gross incomes of $1 million income.In all over 275,000 returns showed adjusted gross incomes of $1million or more.
7. California caters the most millionaires. More than 40,000 Californian reported over $1 million in income.Vermont has the least-less than 300 millionaires.