April 15th is right around the corner!

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.

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

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

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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.

Tax 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.