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Individual income tax returns, by state, 2007.

The Economic Stimulus stimulus /stim·u·lus/ (stim´u-lus) pl. stim´uli   [L.] any agent, act, or influence which produces functional or trophic reaction in a receptor or an irritable tissue.  Act of 2008, which was signed into law on February February: see month.  13, 2008, provided several individual and businesses tax benefits designed to boost the economy. One of the provisions of this act provided an economic stimulus payment to individuals who had qualifying income of at least $3,000 or a net income tax liability. Individuals received a stimulus payment based on their Tax Year 2007 returns, so many individuals filed tax returns even though they were not otherwise required to file. In total, there were 154.7 million individual tax returns filed for Tax Year 2007. (1) Of those, an estimated 12.5 million individual income tax returns were filed solely to receive a stimulus payment.

The Statistics of Income (SOI (Silicon On Insulator) A chip architecture that increases transistor switching speed by reducing capacitance (build-up of electrical charges in the transistor's elements), and thus reducing the discharge time. The power requirement is also reduced in some designs. ) annually publishes "Historical Table 2," showing individual income and tax data by State and size of adjusted gross income (AGI (Artificial General Intelligence) A machine intelligence that resembles that of a human being. Considered impossible by many, most artificial intelligence (AI) research, projects and products deal with specific applications such as industrial robots, playing chess, ). These data are extracted from the population of returns filed for a given tax year, and are collected as returns are processed by the Internal Revenue Service for administrative purposes. The Tax Year 2007 Historical Table 2 published in the spring 2009 issue of the SOI Bulletin included returns filed just to receive the economic stimulus payment. This makes comparisons to previous and later years' data very difficult. To ensure a consistent time series, SOI developed a State-level data file from an expanded statistical sample of returns filed for Tax Year 2007, which allows it to produce State-level estimates that exclude returns filed just to receive an economic stimulus payment (see Data Sources and Limitations section for details on this sample). This article presents data from this file (Table 1).

Excluding the additional tax returns filed solely for the economic stimulus payment, individual taxpayers filed approximately ap·prox·i·mate  
adj.
1. Almost exact or correct: the approximate time of the accident.

2.
 142.2 million individual income tax returns for Tax Year 2007. The AGI reported

on these returns totaled slightly less than $8.7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.

(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.

In the USA and Canada, 10^12.
. In this article, selected sources of income, deductions, and tax components are reviewed at the State level. These include salaries and wages, net capital gain in AGI, business or profession net income, AGI, total itemized deductions, the alternative minimum tax (AMT See vPro. ), and income tax.

Selected Sources of Income

Salaries and wages, as reported on the individual tax return, are amounts of compensation primarily for personal services. (2) This category includes items such as: salaries, wages, commissions, bonuses, tips, etc. Figure A shows the top 10 States with the highest average salaries and wages reported for Tax Year 2007. The average salaries and wages per individual tax return for the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  as a whole was $48,558, as reported on about 120.9 million returns. The highest average salaries and wages was reported in the category labeled "Other Areas," $95,650, although this group represented only 0.7 percent of the total salaries and wages reported for Tax Year 2007. Other Areas, which will be treated as a separate "State" throughout this analysis, includes returns filed by U.S. citizens living abroad, members of armed forces stationed overseas, and residents of Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla.  with income from sources outside Puerto Rico or with income earned as U.S. government employees. About 60 percent of these returns are from U.S. citizens living abroad, and these returns report appreciably ap·pre·cia·ble  
adj.
Possible to estimate, measure, or perceive: appreciable changes in temperature. See Synonyms at perceptible.
 higher salaries, other income, and taxes compared to the other areas included in this category. The two States with the next highest average salaries and wages were Connecticut Connecticut, state, United States
Connecticut (kənĕt`ĭkət), southernmost of the New England states of the NE United States. It is bordered by Massachusetts (N), Rhode Island (E), Long Island Sound (S), and New York (W).
, at $70,362, and New Jersey, at $64,651. Connecticut, with the second highest average salaries and wages, represented 1.8 percent of the total, while New Jersey represented 4.0 percent. The State that represented the largest percentage of total salaries and wages was California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , with 12.9 percent of the total and average salaries and wages of $54,440, the eighth highest.

Business or profession net income or loss is a source of income or loss reported by individuals who are sole proprietors of a nonfarm business, including self-employed self-em·ployed
adj.
Earning one's livelihood directly from one's own trade or business rather than as an employee of another.



self
 members of a profession. The top 10 States with the highest average business or profession net incomes are shown in Figure B. The average business or profession net income was $12,326, reported on nearly 22.9 million returns. The top three States with the highest average business or profession net income were the following: Other Areas, at $26,591, Connecticut, at $22,527, and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). , at $19,443. Other Areas ranked highest in average business or profession net income but only represented 0.4 percent of the nation's total. Just as with salaries and wages, California represented the largest percentage, of all business or profession net income, 16.9 percent. California had more than 3 million returns that reported sole proprietorship A form of business in which one person owns all the assets of the business, in contrast to a partnership or a corporation.

A person who does business for himself is engaged in the operation of a sole proprietorship.
 net income or losses, and the average net income on these returns was $15,692.

Capital gain or loss is the combination of net short-term and long-term gain or loss from sales of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . The net loss allowed to be included in AGI is limited to $3,000 ($1,500 for married filing separate filers). Figure C shows the top 10 States with the highest average net capital gain (less loss). For Tax Year 2007, net capital gain (less loss) was reported on approximately 18.7 percent (26.6 million) of all returns, and the average capital gain reported on those returns was $33,624. The top three States with the highest average net capital gain (less loss) were the following: Wyoming Wyoming, city, United States
Wyoming, city (1990 pop. 63,891), Kent co., W Mich., in the greater Grand Rapids metropolitan area, on the Grand River; settled 1832, inc. 1959.
, at $85,967, Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , at $74,048, and the District of Columbia, at $63,348. However, each of these States represented a small percentage of total capital gains (less loss) reported for 2007 (Wyoming represented 0.5 percent, Nevada represented 1.5 percent, and the District of Columbia represented just 0.4 percent). Once again, California reported the largest share of the U.S. total, 14.8 percent, followed by New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, with 12.7 percent. Of the top 10 States with the highest average capital gain, the State with the highest percentage of returns reporting this source of income was Connecticut, with 25.8 percent of all returns filed by Connecticut residents, followed by Other Areas, at 24.4 percent, and Massachusetts, at 23.5 percent.

Adjusted gross income is gross income less all adjustments, such as payments to Individual Retirement Arrangements (IRAs), alimony alimony, in law, allowance for support that an individual pays to his or her former spouse, usually as part of a divorce settlement. It is based on the common law right of a wife to be supported by her husband, but in the United States, the Supreme Court in 1979  paid, certain student loan interest, and Figure D shows the top 10 States with the highest average AGI. The average AGI for the nation was $61,089. Connecticut had the highest average AGI, at $95,920, followed by Other Areas, at $87,826, and the District of Columbia, at $81,690. For Tax Year 2007, AGI reported by the top 10 States with the highest averages represented about 35.8 percentage of total U.S. AGI, with California having the largest percentage, 13.0 percent.

Total Itemized Deductions

Figure E shows the top 10 States with the highest average total itemized deductions for Tax Year 2007. Together, the top 10 States with the highest average itemized deductions represented 40.4 percent of total itemized deductions. Average itemized deductions for the whole U.S. were $26,464 and were reported on just over 50 million returns. The top five States with the highest average total itemized deductions were: California, at $36,440, the District of Columbia, at $33,958, New York, at $33,435, Other Areas, at $32,098, and Connecticut, at $31,395. California, with the highest average itemized deductions, also represented the largest percentage of total U.S. itemized deductions, 17.4 percent of the total amount reported. New York followed with 8.8 percent of the U.S. total. The percentage of returns reporting itemized deductions for the United States was 35.2 percent. In contrast, almost 50 percent of Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N).  filers reported itemized deductions, the highest share among any State in the top 10. Maryland's average itemized deductions placed it ninth in the overall ranking.

The Alternative Minimum Tax and Income Tax

Figure F displays the top 10 States with the highest average alternative minimum tax (AMT) for Tax Year 2007. The average AMT for the United States was $5,895, and AMT was reported on about 2.9 percent (4.1 million) of all returns. The average AMT for the top 10 States ranged from $6,079 to $7,940. The top three States with the highest average AMT were Other Areas, at $7,940, Wyoming, at $7,587, and California, at $7,446. California represented the largest percentage, 22.9 percent, of the nation's total AMT, while Other Areas and Wyoming only represented 0.5 and 0.1 percent of total AMT, respectively. The top 10 States with the highest average AMT paid approximately 44.4 percent of the total, with just the top two States, California and New York, paying 37.7 percent. Of these top 10 States, the two States with the highest percentage of returns reporting AMT were New York and the District of Columbia. In New York, 5.5 percent of all filers reported the AMT, while the percentage for the District of Columbia was 5.4 percent.

The top 10 States with the highest average income tax are displayed in Figure G. The average income tax for Tax Year 2007 was $11,653, reported on just over 96.1 million returns. The top three States with the highest average income tax were also those with the highest AGI: Connecticut, at $21,113, Other Areas, at $17,812, and the District of Columbia, at $17,251. Illinois Illinois, river, United States
Illinois, river, 273 mi (439 km) long, formed by the confluence of the Des Plaines and Kankakee rivers, NE Ill., and flowing SW to the Mississippi at Grafton, Ill. It is an important commercial and recreational waterway.
 and Texas, despite not being in the top 10 for any of the items discussed above, ranked 9th and 10th, respectively, with an average income tax of $13,077 for Illinois and $12,630 for Texas. California reported the largest percentage of the nation's total income tax, at 13.4 percent, followed by New York, at 9.7 percent, and Texas, at 7.4 percent. Income tax reported by these three States represented nearly 30.5 percent of total U.S. income tax.

Data Sources and Limitations

The statistics in this data release are based on a sample of individual income tax returns (Forms 1040, 1040A, and 1040EZ, including electronically filed returns) filed during Calendar Year 2008. Returns in the sample were stratified stratified /strat·i·fied/ (strat´i-fid) formed or arranged in layers.

strat·i·fied
adj.
Arranged in the form of layers or strata.
 based on: (1) the larger of positive income or negative income; (2) the size of business and farm receipts; (3) the presence or absence of specific forms or schedules; (4) the usefulness of returns for Treasury Department tax modeling purposes; and (5) State group.3 Returns were then selected at rates ranging from 0.1 percent to 100 percent. In an effort to minimize In a graphical environment, to hide an application that is currently displayed on screen. For example, in Windows and Mac, the application's window is removed from the screen and represented by an icon on the Windows Taskbar. In the Mac, the icon is placed in the Dock. See Win Minimize windows.  sampling error, the sample was post-stratified by State at the estimation estimation

In mathematics, use of a function or formula to derive a solution or make a prediction. Unlike approximation, it has precise connotations. In statistics, for example, it connotes the careful selection and testing of a function called an estimator.
 stage.

The State-level Tax Year 2007 data are based on a sample of 3,956,458 returns and an estimated final population of 153,832,380 returns. This is a supersample consisting of the sample drawn to support estimation of national totals, along with a large additional sample giving sufficient returns to support State-level estimates. As explained elsewhere in this article, the Economic Stimulus Act of 2008 contained a special provision that led certain low-income individuals to file in order to receive the stimulus payment. In order to present statistics that are more consistent with previous and later years filing requirements, SOI has made an effort to identify such returns and has excluded them from data analysis for this article.

Return records in the national-level portion of the sample were thoroughly reviewed by specially trained personnel who corrected and made appropriate reallocations of the data to improve its fitness for statistical use. That level of review would be prohibitively pro·hib·i·tive   also pro·hib·i·to·ry
adj.
1. Prohibiting; forbidding: took prohibitive measures.

2.
 costly for the additional returns in this sample. Instead, returns in this sample that are not included in the sample for national-level estimation were subjected to computer "force-balancing" routines that removed inconsistencies, and a subset A group of commands or functions that do not include all the capabilities of the original specification. Software or hardware components designed for the subset will also work with the original.  of the largest returns, or those with large apparent inconsistencies, were reviewed by SOI's subject-matter experts, and, if necessary, were corrected.

Since the data presented here are estimates based on a sample of returns filed, they are subject to sampling error. To properly use the statistical data provided, the magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the  of the potential sampling error must be known; coefficients of variation (CVs) are used to measure that magnitude. (4) Estimates of sampling error were prepared taking both the removal of the "stimulus" returns and post-stratification by State into account. Figure H presents estimated CVs for the numbers of returns and money amounts for selected income items. The reliability of estimates based on samples and the use of coefficients of variation for evaluating the precision of estimates based on samples are discussed in SOI Sampling Methodology and Data Limitations located later in this issue of the SOI Bulletin.

Summary

Since the previously published Historical Table 2 for Tax Year 2007 included individual income tax returns filed solely to receive stimulus payments, direct comparison with previous-year data, which did not include such filers, was not possible. The revised Historical Table 2, as presented in this article, provides a more consistent depiction of the data and allows for a complete time series. Selected sources of income, AGI, total itemized deductions, the alternative minimum tax, and income tax were reviewed at the State level, and States that led the nation in each of these selected categories are highlighted. For Tax Year 2007, individual taxpayers from Connecticut reported the highest average AGI, the only State with average AGI greater than $90,000 and the highest average income tax. Taxpayers from Wyoming reported the highest average capital gains, $85,967, and reported the second highest average AMT. Individual filers from California, the State for which most individual income tax returns were filed, reported the highest average itemized deductions, at $36,440, and reported the largest percentages of the nation's totals for all income and tax items discussed in this article.

(1) Historical Table 2 , Individual Income and Tax Data, by State and Size of Adjusted Gross Income, Tax Year 2007: Statistics of Income Bulletin, Spring 2009, Volume 28, Number 4, p. 132-185.

(2) For further details on the definitions for data variables used in this text, see Statistics of Income--2007, Individual Income Tax Returns (IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws.  Publication 1304).

(3) Returns in the sample were stratified based on the presence or absence of one or more of the following conditions, forms, or schedules: income of $200,000 or more with no tax liability; Schedule C Business Receipts of $50,000,000 or more; Form 2555, Foreign Earned Income; Form 1116, Foreign Tax Credit (Individual); Schedule C, Profit or Loss from Business (Sole Proprietorship); Schedule F, Profit or Loss from Farming. States are divided into three size groups, where size is determined by the number of individual income tax returns filed.

(4) The coefficient of variation Coefficient of Variation

A measure of investment risk that defines risk as the standard deviation per unit of expected return.
 (CV) is defined as the standard error of an estimate divided by the estimate. Standard errors for construction of confidence intervals may be recovered by multiplying the CV by the estimate.

Taquesha Cain is an economist This article is about the profession. For the news publication, see The Economist.

An economist is an expert in the social science of economics.[1]
 with the Individual Research Section. This article was prepared under the direction of Michael Michael, archangel
Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence.
 Strudler, Chief.
Figure A
Salaries and Wages and Average Salaries and Wages, by Selected
State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                        Number of     Percentage
                                       returns with   of returns
                           Total       salaries and     having
                         number of       wages of      salaries
       State            returns [1]      returns      and wages

                            (1)            (2)           (3)

  All states             142,169,394   120,934,764          85.1
Other areas [2,3]            589,696       443,632          75.2
Connecticut                1,743,516     1,463,904          84.0
New Jersey                 4,300,569     3,642,593          84.7
Massachusetts              3,208,489     2,737,566          85.3
District of Columbia         303,860       257,107          84.6
New York                   9,177,173     7,635,159          83.2
Maryland                   2,788,595     2,402,908          86.2
California                16,530,898    13,869,710          83.9
Virginia                   3,756,005     3,282,208          87.4
New Hampshire                674,150       582,794          86.4

                                                      Percentage
                                                       of U.S.
                                         Average        total
                          Salaries       salaries      salaries
       State             and wages      and wages     and wages

                            (4)            (5)           (6)

  All states           5,872,400,587        48,558         100.0
Other areas [2,3]         42,433,560        95,650           0.7
Connecticut              103,003,155        70,362           1.8
New Jersey               235,498,240        64,651           4.0
Massachusetts            163,477,502        59,716           2.8
District of Columbia      15,261,128        59,357           0.3
New York                 441,714,203        57,853           7.5
Maryland                 138,182,308        57,506           2.4
California               755,069,646        54,440          12.9
Virginia                 175,484,642        53,465           3.0
New Hampshire             30,196,618        51,814           0.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure B
Business or Profession Net Income and Average Business or
Profession Net Income, by Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                       Number of      Percentage
                                        returns       of returns
                                          with          having
                          Total       business or    business or
                        number of      profession     profession
State                  returns [1]     net income     net income

                           (1)            (2)            (3)

  All states           142,169,394     22,856,073           16.1
Other areas [2,3]          589,696         42,078            7.1
Connecticut              1,743,516        266,052           15.3
District of Columbia       303,860         45,467           15.0
New Jersey               4,300,569        599,735           13.9
Massachusetts            3,208,489        494,378           15.4
New Hampshire              674,150        109,644           16.3
California              16,530,898      3,027,536           18.3
Washington               3,170,643        449,452           14.2
New York                 9,177,173      1,538,764           16.8
Alaska                     363,641         59,224           16.3

                                                      Percentage
                                                       of U.S.
                                        Average         total
                       Business or    business or    business or
                        profession     profession     profession
State                   net income     net income     net income

                           (4)            (5)            (6)

  All states           281,724,509         12,326          100.0
Other areas [2,3]        1,118,880         26,591            0.4
Connecticut              5,993,254         22,527            2.1
District of Columbia       884,006         19,443            0.3
New Jersey              11,027,051         18,387            3.9
Massachusetts            9,013,498         18,232            3.2
New Hampshire            1,958,336         17,861            0.7
California              47,507,517         15,692           16.9
Washington               6,853,535         15,249            2.4
New York                22,950,760         14,915            8.1
Alaska                     874,995         14,774            0.3

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure C Capital Gain (Less Loss) and Average Capital Gain (Less
Loss), by Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                         Number
                                       of returns     Percentage
                                          with        of returns
                          Total       net capital    having net
                        number of         gain       capital gain
State                  returns [1]    (less loss)    (less loss)

                           (1)            (2)            (3)

  All states           142,169,394     26,639,942           18.7
Wyoming                    268,496         54,897           20.4
Nevada                   1,280,294        183,371           14.3
District of Columbia       303,860         61,535           20.3
New York                 9,177,173      1,900,690           20.7
Other areas [2,3]          589,696        143,756           24.4
Connecticut              1,743,516        450,637           25.8
Florida                  8,936,343      1,598,982           17.9
Washington               3,170,643        690,022           21.8
California              16,530,898      3,129,593           18.9
Massachusetts            3,208,489        755,415           23.5

                                                      Percentage
                                                       of U.S.
                                        Average         total
                       Net capital      capital        capital
                           gain           gain           gain
State                  (less loss)    (less loss)    (less loss)

                           (4)            (5)            (6)

  All states           895,749,568         33,624          100.0
Wyoming                  4,719,306         85,967            0.5
Nevada                  13,578,178         74,048            1.5
District of Columbia     3,898,115         63,348            0.4
New York               114,080,836         60,021           12.7
Other areas [2,3]        7,764,560         54,012            0.9
Connecticut             24,170,426         53,636            2.7
Florida                 82,156,576         51,381            9.2
Washington              30,679,416         44,462            3.4
California             132,136,417         42,222           14.8
Massachusetts           31,229,510         41,341            3.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
salaries and wages (Column 5).

Figure D
Adjusted Gross Income and Average Adjusted Gross Income, by
Selected State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                                        Adjusted
                        Number of      Percentage        gross
State                  returns [1]     of returns        income

                           (1)            (2)             (3)

  All states           142,169,394          100.0    8,685,052,796
Connecticut              1,743,516            1.2      167,238,015
Other areas [2,3]          589,695            0.4       51,790,832
District of Columbia       303,860            0.2       24,822,445
New York                 9,177,173            6.5      713,879,723
Massachusetts            3,208,489            2.3      249,055,678
New Jersey               4,300,569            3.0      333,318,778
Wyoming                    268,496            0.2       20,495,860
Maryland                 2,788,595            2.0      195,978,693
California              16,530,898           11.6    1,132,597,606
Washington               3,170,643            2.2      216,702,912

                                        Percentage
                                         of U.S.
                         Average          total
                         adjusted        adjusted
State                  gross income    gross income

                           (4)             (5)

  All states                61,089            100.0
Connecticut                 95,920              1.9
Other areas [2,3]           87,826              0.6
District of Columbia        81,690              0.3
New York                    77,789              8.2
Massachusetts               77,624              2.9
New Jersey                  77,506              3.8
Wyoming                     76,336              0.2
Maryland                    70,279              2.3
California                  68,514             13.0
Washington                  68,347              2.5

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
adjusted gross income (Column 4).

Figure E
Itemized Deductions and Average Itemized Deductions, by Selected
State, Tax Year 2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                                        Percentage
                                         Number of      of returns
                           Total       returns with       having
                         number of       itemized        itemized
State                   returns [1]     deductions      deductions

                            (1)             (2)             (3)

  All states            142,169,394      50,085,995            35.2
California               16,530,898       6,323,771            38.3
District of Columbia        303,860         125,945            41.4
New York                  9,177,173       3,487,979            38.0
Other areas [2,3]           589,696          76,049            12.9
Connecticut               1,743,516         781,088            44.8
New Jersey                4,300,569       1,929,824            44.9
Nevada                    1,280,294         478,660            37.4
New Hampshire               674,150         246,714            36.6
Maryland                  2,788,595       1,386,890            49.7
Massachusetts             3,208,489       1,320,898            41.2

                                                        Percentage
                                                          of U.S.
                                          Average          total
                         Itemized        itemized        itemized
State                   deductions      deductions      deductions

                            (4)             (5)             (6)

  All states           1,325,484,755         26,464           100.0
California              230,440,950          36,440            17.4
District of Columbia      4,276,846          33,958             0.3
New York                116,621,852          33,435             8.8
Other areas [2,3]         2,440,994          32,098             0.2
Connecticut              24,522,011          31,395             1.9
New Jersey               58,473,057          30,300             4.4
Nevada                   14,265,520          29,803             1.1
New Hampshire             7,223,523          29,279             0.5
Maryland                 39,936,413          28,796             3.0
Massachusetts            37,405,806          28,318             2.8

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
itemized deductions (Column 5).

Figure F
Alternative Minimum Tax and Average Alternative Minimum Tax, by
Selected State, Tax Year 2007

[All figures are estimates based on a sample--money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                            Number        Percentage
                                          of returns      of returns
                                            paying          paying
                       Total number of    alternative     alternative
State                    returns [1]      minimum tax     minimum tax

                             (1)              (2)             (3)

  All states              142,169,394       4,103,044             2.9
Other areas [2,3]             589,696          15,840             2.7
Wyoming                       268,496           3,851             1.4
California                 16,530,898         743,498             4.5
District of Columbia          303,860          16,291             5.4
New York                    9,177,173         500,378             5.5
Florida                     8,936,343         164,797             1.8
Nevada                      1,280,294          18,020             1.4
Vermont                       318,602           8,794             2.8
Maine                         648,047          14,708             2.3
Montana                       470,100           8,601             1.8

                                                        Percentage
                                                         of U.S.
                                         Average          total
                        Alternative     alternative     alternative
State                   minimum tax     minimum tax     minimum tax

                            (4)             (5)             (6)

  All states             24,187,662           5,895           100.0
Other areas [2,3]           125,773           7,940             0.5
Wyoming                      29,216           7,587             0.1
California                5,535,892           7,446            22.9
District of Columbia        118,933           7,301             0.5
New York                  3,576,407           7,147            14.8
Florida                   1,050,866           6,377             4.3
Nevada                      114,203           6,338             0.5
Vermont                      54,929           6,246             0.2
Maine                        90,450           6,150             0.4
Montana                      52,284           6,079             0.2

[1] Total number of returns does not include returns filed by
individuals who had no other reason to file except to receive the
economic stimulus payment.

[2] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto Rico with income from
sources outside Puerto Rico or with income earned as U.S.
government employees.

[3] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
alternative minimum tax (Column 5).

Figure G
Income Tax and Average Income Tax, by Selected State, Tax Year
2007

[All figures are estimates based on a sample-money amounts are in
thousands of dollars, average amounts are in whole dollars]

                                         Number of     Percentage of
                        Total number   returns paying  returns paying
State                  of returns [1]    income tax      income tax

                            (1)             (2)             (3)

  All states             142,169,394      96,113,427            67.6
Connecticut                1,743,516       1,320,320            75.7
Other areas [3,4]            589,696         309,975            52.6
District of Columbia         303,860         220,442            72.5
New York                   9,177,173       6,304,998            68.7
New Jersey                 4,300,569       3,128,989            72.8
Wyoming                      268,496         193,888            72.2
Massachusetts              3,208,489       2,456,363            76.6
California                16,530,898      10,885,925            65.9
Illinois                   6,110,590       4,194,048            68.6
Texas                     10,575,752       6,591,281            62.3

                                                       Percentage of
                                       Average income   U.S. total
State                  Income tax [2]       tax         income tax

                            (4)             (5)             (6)

  All states           1,120,013,195          11,653          100.0
Connecticut               27,875,398          21,113            2.5
Other areas [3,4]          5,521,253          17,812            0.5
District of Columbia       3,802,746          17,251            0.3
New York                 108,163,628          17,155            9.7
New Jersey                48,984,999          15,655            4.4
Wyoming                    2,912,040          15,019            0.3
Massachusetts             36,552,290          14,881            3.3
California               149,767,275          13,758           13.4
Illinois                  54,846,371          13,077            4.9
Texas                     83,246,863          12,630            7.4

[1] Total number of returns does not include the returns filed by
individuals to only receive the economic stimulus payment and who
have no other reason to file.

[2] Income tax was the sum of income tax after credits (including
the subtraction of earned income credit) plus the tax from Form
4970. For a more detailed explanation, see Statistics of
Income-2007, Individual Income Tax Returns (IRS Publication
1304).

[3] Includes returns filed from Army Post Office and Fleet Post
Office addresses by members of the armed forces stationed
overseas; returns filed by other U.S. citizens abroad; and
returns filed by residents of Puerto ico with income from sources
outside Puerto Rico or with income earned as U.S. government
employees.

[4] These data are based on the address listed on the Form 1040.
This differs from the data in Historical Table 2 published in the
spring 2009 issue of the Statistics of Income Bulletin, in which
the State is based on the universal location code, a code used
for IRS administrative processing.

NOTE: The 10 States shown in this figure have the largest average
income tax (Column 5).

Figure H
Individual Income Tax Returns: Coefficients of Variation for
Selected Items, by State, Tax Year 2007

[Coefficients of variation are in percentages]

                                Coefficients of variation

                                               Combined net  Adjusted
State                  Salaries   Business or    capital      gross
                       and wages  profession    gain (less    income
                                  net income   loss) in AGI   (AGI)

                          (1)         (2)          (3)         (4)

All states                 0.05         0.22          0.05      0.03
ALASKA                     0.97         3.93          1.85      0.56
ALABAMA                    0.53         2.38          0.59      0.33
ARKANSAS                   0.74         2.70          0.85      0.45
ARIZONA                    0.42         1.90          0.39      0.25
CALIFORNIA                 0.14         0.49          0.11      0.08
COLORADO                   0.41         1.77          0.36      0.23
CONNECTICUT                0.36         1.27          0.23      0.18
DISTRICT OF COLUMBIA       0.95         4.02          0.53      0.48
DELAWARE                   1.09         4.79          1.13      0.64
FLORIDA                    0.25         1.26          0.14      0.13
GEORGIA                    0.31         1.81          0.36      0.20
HAWAII                     0.93         2.74          0.94      0.54
IOWA                       0.64         2.60          0.87      0.40
IDAHO                      0.91         3.68          0.91      0.55
ILLINOIS                   0.25         1.20          0.20      0.14
INDIANA                    0.43         1.75          0.48      0.27
KANSAS                     0.62         2.19          0.70      0.38
KENTUCKY                   0.58         2.18          0.73      0.40
LOUISIANA                  0.53         2.14          0.75      0.35
MASSACHUSETTS              0.31         1.11          0.23      0.18
MARYLAND                   0.33         1.63          0.37      0.19
MAINE                      0.98         3.21          1.38      0.60
MICHIGAN                   0.34         1.45          0.45      0.20
MINNESOTA                  0.40         1.87          0.48      0.24
MISSOURI                   0.45         1.86          0.53      0.28
MISSISSIPPI                0.75         2.76          1.10      0.49
MONTANA                    1.19         4.16          1.23      0.65
NORTH CAROLINA             0.35         1.47          0.42      0.21
NORTH DAKOTA               1.24         4.51          1.85      0.73
NEBRASKA                   0.78         3.30          0.86      0.48
NEW HAMPSHIRE              0.76         2.55          0.73      0.45
NEW JERSEY                 0.24         0.93          0.26      0.14
NEW MEXICO                 0.91         3.36          0.98      0.54
NEVADA                     0.58         2.90          0.30      0.31
NEW YORK                   0.19         0.62          0.09      0.10
OHIO                       0.32         1.44          0.43      0.20
OKLAHOMA                   0.62         2.22          0.44      0.36
OREGON                     0.57         2.05          0.53      0.31
PENNSYLVANIA               0.28         0.97          0.29      0.17
RHODE ISLAND               0.91         3.32          1.02      0.55
SOUTH CAROLINA             0.56         2.19          0.59      0.34
SOUTH DAKOTA               1.31         3.98          1.36      0.76
TENNESSEE                  0.44         1.35          0.43      0.27
TEXAS                      0.20         0.78          0.17      0.12
UTAH                       0.63         3.26          0.64      0.39
VIRGINIA                   0.31         1.41          0.32      0.19
VERMONT                    1.36         4.44          1.28      0.78
WASHINGTON                 0.37         1.42          0.25      0.20
WISCONSIN                  0.42         1.84          0.55      0.26
WEST VIRGINIA              0.96         3.03          1.52      0.62
WYOMING                    1.31         5.32          0.48      0.60
OTHER AREAS                0.53         2.92          0.51      0.40

                                  Coefficients of variation

State
                       Total itemized   Alternative
                         deductions     minimum tax   Total income

                            (5)             (6)           (7)

All states                      0.08          0.11           0.04
ALASKA                          2.13          4.83           0.75
ALABAMA                         0.80          2.25           0.38
ARKANSAS                        1.02          1.53           0.51
ARIZONA                         0.55          1.22           0.30
CALIFORNIA                      0.20          0.22           0.09
COLORADO                        0.53          0.88           0.27
CONNECTICUT                     0.47          0.62           0.17
DISTRICT OF COLUMBIA            1.32          1.24           0.53
DELAWARE                        1.42          1.88           0.76
FLORIDA                         0.36          0.60           0.13
GEORGIA                         0.43          0.74           0.23
HAWAII                          1.35          1.77           0.66
IOWA                            0.88          1.98           0.47
IDAHO                           1.17          2.24           0.65
ILLINOIS                        0.37          0.76           0.16
INDIANA                         0.63          1.05           0.32
KANSAS                          0.86          1.43           0.43
KENTUCKY                        0.77          1.87           0.43
LOUISIANA                       1.10          1.73           0.40
MASSACHUSETTS                   0.41          0.56           0.18
MARYLAND                        0.45          0.54           0.23
MAINE                           1.50          1.96           0.72
MICHIGAN                        0.45          0.74           0.24
MINNESOTA                       0.49          0.68           0.27
MISSOURI                        0.63          0.86           0.31
MISSISSIPPI                     1.36          2.35           0.59
MONTANA                         1.42          1.88           0.77
NORTH CAROLINA                  0.45          0.59           0.24
NORTH DAKOTA                    2.61          3.66           0.89
NEBRASKA                        0.92          1.48           0.56
NEW HAMPSHIRE                   0.94          2.40           0.53
NEW JERSEY                      0.42          0.36           0.15
NEW MEXICO                      1.30          2.38           0.60
NEVADA                          0.83          1.40           0.35
NEW YORK                        0.23          0.22           0.10
OHIO                            0.43          0.55           0.24
OKLAHOMA                        0.80          1.89           0.39
OREGON                          0.64          1.21           0.37
PENNSYLVANIA                    0.42          0.65           0.19
RHODE ISLAND                    1.30          4.17           0.65
SOUTH CAROLINA                  0.75          1.19           0.39
SOUTH DAKOTA                    2.12          3.31           0.84
TENNESSEE                       1.00          1.60           0.30
TEXAS                           0.37          0.65           0.13
UTAH                            0.76          1.39           0.47
VIRGINIA                        0.44          0.62           0.21
VERMONT                         1.75          1.90           0.91
WASHINGTON                      0.54          1.22           0.23
WISCONSIN                       0.55          0.95           0.31
WEST VIRGINIA                   1.89          2.66           0.75
WYOMING                         2.22          3.05           0.61
OTHER AREAS                     1.49          2.52           0.46
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Author:Cain, Taquesha
Publication:Statistics of Income. SOI Bulletin
Geographic Code:1U9CA
Date:Mar 22, 2011
Words:6408
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