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Post Date:  6/24/2015
Last Updated:  6/24/2015

Summary
Cross References
- IRS Statistics of Income Bulletin, Spring 2015

The IRS recently released the first statistics of income data available for the 2013 tax year. Taxpayers filed 147.7 million individual income tax returns for 2013. While AGI and taxable income both increased 0.8% from 2012 to 2013, total income tax increased 3.6% to $1.2 trillion and total tax liability increased 4.5% to $1.3 trillion. The larger percentage increase in total income tax and total tax liability relative to AGI and taxable income coincided with the new higher marginal tax rates for ordinary income (increase from 35% to 39.6%), certain capital gain income (increase from 15% to 20%), the new 3.8% net investment income tax (NIT), and the new 0.9% Additional Medicare Tax. Correspondingly, the alternative minimum tax (AMT) decreased 22.7% to $22.5 billion for tax year 2013.

Total number of taxpayers in 2013 that were subject to the new Additional Medicare Tax was just under 2.9 million. Total Additional Medicare Tax was just over $6.6 billion, for an average of $2,306 per taxpayer who was subject to the tax.

Total number of taxpayers in 2013 that were subject to the new net investment income tax was almost 3.1 million. Total net investment income tax was almost $11.7 billion, for an average of $3,786 per taxpayer who was subject to the tax.

The Additional Medicare Tax and the net investment income tax were two tax increases signed into law as part of the Health Care Reform Act of 2010 with the intention of using the additional tax revenue to help pay for the cost of certain provisions contained in the Health Care law (otherwise known as the Affordable Care Act – ACA). The estimated combined total tax revenue collected by these two tax provisions in 2013 equals $18.3 billion. The Joint Committee on Taxation originally estimated that the amount of revenue collected from these two tax increases in 2013 would be $20.5 billion. The IRS notes that the Spring 2015 Statistics of Income Bulletin is only an estimate based on a sample of returns filed, and that they are subject to sampling error.

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