January 12, 1999
IRS Issues Fall Statistics of Income Bulletin
WASHINGTON - Final data for 1996 show that adjusted gross
income (AGI) reported on the nation's 120.4 million individual
income tax returns for that year reached $4.5 trillion. This was 8.3
percent more than for 1995.
Taxpayers who itemized their deductions numbered 35.4 million,
but the majority, 84.0 million, used the standard deduction.
Dollarwise, standard deductions totaled $426.1 billion, but itemized
deductions totaled $572.5 billion. The largest itemized deductions
were for home mortgage interest, $220.2 billion, and for taxes paid,
The individual income tax for 1996 was $658.2 billion, averaging
14.5 percent of AGI. The comparable percentage for 1995 was 14.0.
The earned income tax credit increased from $26.0 billion for 1995
to $28.8 billion. About 19.5 million low-income wage earners claimed
the credit, up from 19.3 million for 1995. These facts are included
in the Fall issue of the quarterly Statistics of Income Bulletin,
Another article relating to the individual income tax shows that
for 1993, over 9 million returns (out of the 115 million return
total) were filed by dependents of other taxpayers. Over 7 million
of these dependents reported an AGI under $5,000.
A third article shows that partnership profits for 1996 reached
$145.2 billion, increasing sharply by $38.4 billion over 1995.
Limited partnerships accounted for $22.9 billion of the increase.
The total number of partnerships grew 4.6 percent to 1.7 million,
but the number of partners, 15.7 million, remained about the same.
A fourth article reports that for 1995, there were over 60,000
domestic corporations controlled by a foreign corporation or other
foreign person. Their sales and other receipts amounted to $1.5
trillion, almost 11 percent of the total for all domestic
corporations. Profits of these corporations totaled $38.5 billion,
compared to $21.9 billion for 1994. The U.S. income tax they
reported was $13.2 billion, up by 30 percent over 1994. Most of the
companies were manufacturers or wholesalers, and 28.5 percent were
controlled by a Japanese person.
Yet another article reports that for 1994, there were 7,199 U.S.
corporations that claimed a foreign tax credit. This $25.4 billion
credit enabled these companies to reduce their U.S. income tax
liability from $90.8 billion to $65.4 billion. The United Kingdom,
Canada, Germany, Japan, Brazil, the Netherlands, France, and Mexico
were the leading sources of the taxable income on which the foreign
taxes were paid.
The final article reviews developments in the nonprofit sector
from 1975 to 1995. After adjusting for inflation, assets and
revenues of nonprofit, tax-exempt organizations more than tripled,
to $1.9 trillion and $0.9 trillion, respectively, over the 20-year
The Statistics of Income Bulletin is available from the
Superintendent of Documents, U.S. Government Printing Office, P.O.
Box 371954, Pittsburgh, PA 15250-7954. The annual subscription rate
is $29 ($36.25 foreign): single issues cost $18 ($22.50 foreign).
For other data, write the Director, Statistics of Income Division
OP:RS:S, Internal Revenue Service, P. 0. Box 2608, Washington, DC
20013-2608; dial the SOI electronic bulletin board at (202)
874-9574; check the World Wide Web at www.irs.ustreas.gov or
telephone the SOI statistical information services office at (202)
874-0410 (by e-mail, firstname.lastname@example.org
; by fax, (202) 974-0964).
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