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The data are based on administrative records (individual income tax returns) from the Internal Revenue Service's Individual Master File (IMF) system, which includes a record for every Form 1040, 1040A, and 1040EZ filed with the IRS. The records included in this study were returns that were filed between January 1, 2008 and December 31, 2008. Generally, these are Tax Year 2007 returns although a limited number of late-filed returns for tax years before 2006 were also filed during this period. If a taxpayer filed returns for multiple years during this period, only the most recent return was included. How the Tables Were Developed The ZIP Code Data were developed by sorting the returns by the ZIP code provided on the return by the taxpayer. No attempt was made to correct the ZIP Codes provided by the taxpayers. In many cases, ZIP codes which are currently invalid were valid at some time in the past. Returns with foreign or APO or FPO addresses, or which did not contain a ZIP code were not included in these statistics. The state in which a return belonged was determined by the ZIP code. Several steps were taken to avoid disclosure of information about individual taxpayers. ZIP codes from which fewer than 10 returns were filed were suppressed. The data for these ZIP Codes are not included in the state totals. Also, when an AGI class for a given ZIP code had a frequency of less than 10, it was combined with another AGI class within the same ZIP Code to create a total of 10 or greater. The order in which this was done was from highest AGI class to lowest AGI. The exception to this rule is when the lowest AGI class had less than 10, the lowest AGI class was combined with the next higher AGI class where the combination of the two classes was greater than or equal to 10. An additional disclosure protection technique employed was the removal of any return that represented a specified percentage of the total of any particular cell. For example, if one return represented 75% of the value of a given cell, that return was suppressed from the tabulation. The actual threshold percentage used, however, cannot be released. The returns suppressed in this manner are not included in the state totals. Statistical Items Shown in the File Number of returns [1]Form 1040, 1040A, 1040-EZNumber of joint returns Filing Status is Married Filing JointlyNumber with paid preparer's signature Paid Preparer Outside IRSNumber of exemptions Form 1040, 1040A, Line 6dNumber of returns with dependents Form 1040, 1040A, Line 6cAdjusted gross income (AGI) [2] Form 1040 Line 37, 1040A Line 21, 1040EZ Line 4Salaries and wages in AGI: Number Form 1040 and 1040A, Line 7/ 1040-EZ Line 1AmountTaxable interest: Number Form 1040, 1040A Line 8a, 1040EZ Line 2AmountOrdinary dividends: Number Form 1040, 1040A Line 9aAmountBusiness or profession net income (less loss): Number Form 1040, Line 12AmountNumber of farm returns Form 1040, Schedule F Net capital gain (less loss) in AGI: Number Form 1040 Line 13, 1040A Line 10AmountTaxable individual retirement arrangements distributions: Number Form 1040 Line 15b, 1040A Line 11bAmountTaxable pensions and annuities in AGI: Number Form 1040 Line 16b, 1040A Line 12bAmountUnemployment compensation: [3] Number Form 1040 Line 19, 1040A Line 13, 1040EZ Line 3AmountTaxable Social Security benefits in AGI: Number Form 1040 Line 20b, 1040A Line 14bAmountSelf-employment retirement plans: Number Form 1040, Line 28AmountTotal itemized deductions: [4] Number Form 1040, Schedule A, Line 29AmountState and local income taxes: Number Form 1040, Schedule A, Line 5aAmount State and local general sales tax: Number  Form 1040, Schedule A, Line 5bAmountReal estate taxes: Number Form 1040, Schedule A, Line 6AmountTaxes paid: Number Form 1040, Schedule A, Line 9AmountMortgage interest paid: Number Form 1040, Schedule A, Line 10AmountContributions: Number Form 1040, Schedule A, Line 19AmountTaxable income: NumberForm 1040 Line 43, 1040A Line 27, 1040EZ Line 6AmountTotal tax credits: [5] NumberForm 1040 Line 56, 1040A Line 34AmountResidential energy tax credit: Number Form 1040, Form 5695, Line 27AmountChild tax credit: Number Form 1040 Line 52, 1040A Line 32AmountChild and dependent care credit: Number Form 1040 Line 47, 1040A Line 29AmountEarned income credit: [6] Number Form 1040 Line 66a, 1040A Line 40a, 1040EZ Line 8aAmountExcess earned income credit (refundable): [7] Number see footnoteAmountAlternative minimum tax: Number Form 1040, Form 6251, Line 35Amount Income tax: [8] NumberForm 1040, Line 57, 1040A Line 28, 1040EZ Line 10Amount Total tax liability: [9] NumberForm 1040 Line 63, 1040A Line 37, 1040EZ Line 10Amount Tax due at time of filing:[10] NumberForm 1040 Line 76, 1040A Line 46, 1040EZ Line 12Amount Overpayments refunded: [11] NumberForm 1040 Line 74a, 1040A Line 44a, 1040EZ Line 11aAmount Footnotes: - Data for Tax Year 2007 includes returns that were filed by individuals only to receive the economic stimulus payment and who had no other reason to file. This may affect the data for various items shown in the table such as the total number of returns. * - This symbol represents a value not shown to avoid disclosure of information about specific taxpayers. However, the data are combined with data in a lower size class, as appropriate, and included in the appropriate totals. Note: The �*� is placed only in the Number of returns� columns and not the Amount� columns. Refer to the corresponding Number of returns� cell to verify if an Amount� cell was suppressed to avoid disclosure. [1] Includes returns with adjusted gross deficit. [2] "Number," here and elsewhere in the Zip Code File, represents number of returns. [3] Includes the Alaskan permanent fund, reported by residents of Alaska on Forms 1040A and 1040EZ's. This fund only applies to statistics in the U.S. totals, and the state of Alaska. [4] "Itemized deductions" include any amounts reported by the taxpayer, even if they could not be used in computing "taxable income," the base on which the regular income tax was computed. Thus, total itemized deductions include amounts that did not have to be reported by taxpayers with no "adjusted gross income." (Adjusted gross income is the total from which these deductions would normally be subtracted.) In addition, if standard and itemized deductions were both reported on a tax return, the form of deduction actually used in computing income tax was the one used for the statistics. Therefore, if the standard deduction was the form of deduction used, the total reported for itemized deductions was excluded from the statistics. However, the component deductions were not similarly excluded. As a result, the number of returns and related amounts for the component deductions are slightly overstated in relation to the grand total shown for itemized deductions. These components are also overstated in relation to the total because there was a statutory limitation on the total of itemized deductions that could be claimed by certain high-income taxpayers. This limitation did not affect the component deductions, the sum of which therefore exceeded the total used in computing income tax. [5] "Total tax credits" excludes the "earned income credit" which is shown separately below in the table. [6] "Earned income credit" includes both the refundable and non-refundable portions. The non-refundable portion could reduce income tax and certain related taxes to zero. The earned income credit amounts in excess of total tax liability, or amounts when there was no tax liability at all, were refundable. See footnote 8 below for explanation of the refundable portion of the earned income credit. [7] The refundable portion of the "earned income credit" equals "total income tax" minus the "earned income credit". If the result is negative, this amount is considered the refundable portion. [8] "Income tax" is in general, the same as "income tax after credits" which was redefined in Tax Year 2000 to include the "alternative minimum tax (AMT)". Zip Code table "Income tax" differs from "total income tax" (in other tables) in that the Zip Code table "Income tax" is after the subtraction of all tax credits except the earned income credit. See footnote 7 and 8 above, for an explanation of the treatment of the earned income credit. "Income tax" reflects the amount reported on the tax return and is, therefore, before any examination or enforcement activities by the Internal Revenue Service. It represents the tax filer reported income tax liability that was payable to the U.S. Department of the Treasury. [9] For the Zip Code tables, "Total tax liability" differs from "Income tax," in that "Total tax liability" includes the taxes from recapture of certain prior-year credits, tax applicable to individual retirement arrangements (IRA's), Social Security taxes on self-employment income and on certain tip income, advanced earned income payments, household employment taxes, and certain "other taxes" listed in the Form 1040 instructions. [10] Reflects payments to or withholdings made to "Total tax liability" (footnote 10). The amount the tax filer owes when the income tax return is filed. [11] The amount of overpayments the tax filer requested to have refunded. NOTE: This table presents aggregates of all returns filed and processed through the Individual Master File (IMF) system during Calendar Year 2008, for the most current tax year filed by each taxpayer. If a taxpayer filed multiple returns for different tax years in Calendar Year 2008, only the return with the most current tax year was used. In general, during administrative or Master File processing, taxpayer reporting discrepancies are corrected only to the extent necessary to verify the total tax liability reported. Most of the other corrections to the taxpayer records used for these statistics could not be made because of time and resource constraints. The statistics in the Zip Code tables should, therefore, be used with the knowledge that some of the data have not been perfected or edited for statistical purposes and that U.S. totals in this table may not be altogether comparable to U.S. totals in other tables, as a result. Classification by Zip Code was usually based on the taxpayer's home address. However, some taxpayers may have used the address of a tax lawyer, or accountant, or the address of a place of business; moreover, such addresses could each have been located in a Zip Code other than the Zip Code in which the taxpayer resided. For an explanation of the tax law changes which could affect the year-to-year analysis of data, refer to the respective years' "Individual Income Tax Returns, Preliminary Data" article published in the SOI Spring Bulletin. For further explanation of the tax for further explanation of the tax terms, refer to the respective years' "Individual Income Tax Returns," Publication 1304. SOURCE: IRS, Statistics of Income Division, Individual Master File (IMF), May 2010. "./02E� � � � � �   5 6 ? 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