New Home of Hoffman & Associates

•September 27, 2012 • 1 Comment

Hoffman & Associates now has a new website in order to serve you better.  Looking for the best help a small business can get?  If you need

Accounting San Diego

for your small business don’t hesitate to call Hoffman & Associates to discuss all your options.  For tax preparation to

bookkeeping San Diego

and much more!  We are here to help catapult your business to success.  By partnering with Hoffman &  Associates you are going to be able to spend more time focused on those activities that help your business make money.  Just the thought of doing paperwork, payroll, or any bookkeeping is the cause of much stress.  Our job is to take those burdens out of your hands and do so at affordable prices.  Call us today to take the first step to planning on your businesses success.

858-576-1122

San Diego Tax Accountant with great prices

•March 11, 2011 • Leave a Comment

San Diego Tax Accountant

April 15th is right around the corner! Don’t forget to visit Hoffman & Associates at the new site Hoffmantaxesandaccounting.com

If you need help getting your taxes in order, contact us today, we still have a few spots available to help you make the deadline.

Call us today! (858) 576-1122

We have experience in handling taxes for Individuals, Corporations, Partnerships & LLC’s, Non-Profits, Trusts and Estates.

Who Pays The Most Tax?

•July 22, 2009 • Comments Off

We’ve all heard “the rich hardly pay any tax”. Is this true? Nope! IRS statistics for 2006 income tax returns might surprise you. The wealthiest definitely pay the most tax. But, your guess of what is considered “wealthy” may be a shock, too.

Be careful! The chart below needs some thought. The Census Bureau counts people – IRS counts tax returns. We have 304 million Americans, but only 138 million tax returns. A family might file a single return. Those with very low income are not required to file at all. Few returns come from Americans under age 18.

Imagine that all tax returns are stacked in a huge pile in order of their reported income, with highest incomes on top, and lowest incomes on the bottom.  Looking- closely at this gi ant stack – – -

_______All Tax Returns         Top 1 %       Top 5%      Top 10%      Top 50%
Number of
Returns (millions)      138           1.38           6.92         13.8          69.2

________________________________________________________________________

AGI (Dollars)            N/A       $388,806      $153,542     $108,904      $31,987

________________________________________________________________________

Share of Income (%)      100.0        22.1         36.          47.3          87.5 ________________________________________________________________________

Tax share (%)         100.0          39.9             60.1           70.8            97.0 ________________________________________________________________________

Number of Returns. This row counts only returns with positive income. It is possible to have a return with negative income.

AGI refers to Adjusted Gross Income. It’s the bottom number on Page 1 of Form 1040. Not all “income” is included. Tax-exempt interest is not.
Social Security income may be absent, orpart may be included. A business or rental can have negative income.

Who Pays the Most TaxesTax Share is surprising. The top 1% of returns generate nearly 40% of all income tax revenue, but had only 22% of all reported income. Also note – the top 50% of returns pay 96.7% of all income tax. The lower 50% of returns pay only 3.0% of all income tax, or about $26 billion. In truth, the lower 50% collect more than they pay, because of the earned income credit, but this credit comes from Social Security taxes, not income tax!

Surprised? Many couples with an income just over $100,000 probably consider themselves to be “middle income”. IRS would definitely call them “wealthy” and place most of them in the top 10% of all incomes.

Visit our new website.

 
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