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Income tax in the United States - Wikipedia

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					<h1 id="section_0">Income tax in the United States</h1>
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<p><b>Income taxes in the United States</b> are imposed by the <a href="/wiki/Federal_government_of_the_United_States" title="Federal government of the United States">federal</a>, most <a href="/wiki/State_governments_in_the_United_States" class="mw-redirect" title="State governments in the United States">states</a>, and many <a href="/wiki/Local_governments_in_the_United_States" class="mw-redirect" title="Local governments in the United States">local governments</a>. The <a href="/wiki/Income_tax" title="Income tax">income taxes</a> are determined by applying a tax rate, which <a href="/wiki/Progressive_tax" title="Progressive tax">may increase as income increases</a>, to <a href="/wiki/Taxable_income" title="Taxable income">taxable income</a>, which is the total income less allowable <a href="/wiki/Tax_deduction" title="Tax deduction">deductions</a>. Income is broadly defined. Individuals and corporations are directly taxable, and estates and trusts may be taxable on undistributed income. <a href="/wiki/Partnership_taxation_in_the_United_States" title="Partnership taxation in the United States">Partnerships</a> are not taxed, but their partners are taxed on their shares of partnership income. Residents and citizens are taxed on worldwide income, while nonresidents are taxed only on income within the jurisdiction. Several types of <a href="/wiki/Tax_credit" title="Tax credit">credits</a> reduce tax, and some types of credits may exceed tax before credits. An alternative tax applies at the federal and some state levels.
</p><p>In the <a href="/wiki/United_States" title="United States">United States</a>, the term "payroll tax" usually refers to <a href="/wiki/Federal_Insurance_Contributions_Act_tax" title="Federal Insurance Contributions Act tax">FICA taxes</a> that are paid to fund <a href="/wiki/Social_Security_(United_States)" title="Social Security (United States)">Social Security</a> and <a href="/wiki/Medicare_(United_States)" title="Medicare (United States)">Medicare</a>, while "income tax" refers to taxes that are paid into state and federal general funds.
</p><p>Most business expenses are deductible. Individuals may also deduct a personal allowance (exemption) and certain personal expenses, including home mortgage interest, state taxes, contributions to charity, and some other items. Some deductions are subject to limits.
</p><p><a href="/wiki/Capital_gains_tax_in_the_United_States" title="Capital gains tax in the United States">Capital gains</a> are taxable, and capital losses reduce taxable income to the extent of gains (plus, in certain cases, $3,000 or $1,500 of ordinary income). Individuals currently pay a lower rate of tax on capital gains and certain corporate dividends.
</p><p>Taxpayers generally must self assess income tax by filing <a href="/wiki/Tax_return_(United_States)" title="Tax return (United States)">tax returns</a>. Advance payments of tax are required in the form of withholding tax or estimated tax payments. Taxes are determined separately by each jurisdiction imposing tax. Due dates and other administrative procedures vary by jurisdiction. April 15 following the tax year is the last day for individuals to file tax returns for federal and many state and local returns. Tax as determined by the taxpayer may be adjusted by the taxing jurisdiction.
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<div id="toc" class="toc"><input type="checkbox" role="button" id="toctogglecheckbox" class="toctogglecheckbox" style="display:none"><div class="toctitle" lang="en" dir="ltr"><h2>Contents</h2><span class="toctogglespan"><label class="toctogglelabel" for="toctogglecheckbox"></label></span></div>
<ul><li class="toclevel-1 tocsection-1"><a href="#Basics"><span class="tocnumber">1</span> <span class="toctext">Basics</span></a></li>
<li class="toclevel-1 tocsection-2"><a href="#Federal_income_tax_rates_for_individuals"><span class="tocnumber">2</span> <span class="toctext">Federal income tax rates for individuals</span></a>
<ul><li class="toclevel-2 tocsection-3"><a href="#Marginal_tax_rates"><span class="tocnumber">2.1</span> <span class="toctext">Marginal tax rates</span></a>
<ul><li class="toclevel-3 tocsection-4"><a href="#Marginal_tax_rates_since_2008"><span class="tocnumber">2.1.1</span> <span class="toctext">Marginal tax rates since 2008</span></a></li>
<li class="toclevel-3 tocsection-5"><a href="#Marginal_tax_rates_for_2018"><span class="tocnumber">2.1.2</span> <span class="toctext">Marginal tax rates for 2018</span></a></li>
<li class="toclevel-3 tocsection-6"><a href="#Marginal_tax_rates_for_2019"><span class="tocnumber">2.1.3</span> <span class="toctext">Marginal tax rates for 2019</span></a></li>
</ul></li>
<li class="toclevel-2 tocsection-7"><a href="#Example_of_a_tax_computation"><span class="tocnumber">2.2</span> <span class="toctext">Example of a tax computation</span></a></li>
<li class="toclevel-2 tocsection-8"><a href="#Effective_income_tax_rates"><span class="tocnumber">2.3</span> <span class="toctext">Effective income tax rates</span></a></li>
</ul></li>
<li class="toclevel-1 tocsection-9"><a href="#Taxable_income"><span class="tocnumber">3</span> <span class="toctext">Taxable income</span></a>
<ul><li class="toclevel-2 tocsection-10"><a href="#Gross_income"><span class="tocnumber">3.1</span> <span class="toctext">Gross income</span></a></li>
<li class="toclevel-2 tocsection-11"><a href="#Business_deductions"><span class="tocnumber">3.2</span> <span class="toctext">Business deductions</span></a></li>
<li class="toclevel-2 tocsection-12"><a href="#Personal_deductions"><span class="tocnumber">3.3</span> <span class="toctext">Personal deductions</span></a></li>
</ul></li>
<li class="toclevel-1 tocsection-13"><a href="#Capital_gains"><span class="tocnumber">4</span> <span class="toctext">Capital gains</span></a></li>
<li class="toclevel-1 tocsection-14"><a href="#Partnerships_and_LLCs"><span class="tocnumber">5</span> <span class="toctext">Partnerships and LLCs</span></a></li>
<li class="toclevel-1 tocsection-15"><a href="#Corporate_tax"><span class="tocnumber">6</span> <span class="toctext">Corporate tax</span></a>
<ul><li class="toclevel-2 tocsection-16"><a href="#Corporate_tax_rates"><span class="tocnumber">6.1</span> <span class="toctext">Corporate tax rates</span></a></li>
<li class="toclevel-2 tocsection-17"><a href="#Deductions_for_corporations"><span class="tocnumber">6.2</span> <span class="toctext">Deductions for corporations</span></a></li>
</ul></li>
<li class="toclevel-1 tocsection-18"><a href="#Estates_and_trusts"><span class="tocnumber">7</span> <span class="toctext">Estates and trusts</span></a></li>
<li class="toclevel-1 tocsection-19"><a href="#Retirement_savings_and_fringe_benefit_plans"><span class="tocnumber">8</span> <span class="toctext">Retirement savings and fringe benefit plans</span></a></li>
<li class="toclevel-1 tocsection-20"><a href="#Credits"><span class="tocnumber">9</span> <span class="toctext">Credits</span></a></li>
<li class="toclevel-1 tocsection-21"><a href="#Alternative_minimum_tax"><span class="tocnumber">10</span> <span class="toctext">Alternative minimum tax</span></a></li>
<li class="toclevel-1 tocsection-22"><a href="#Accounting_periods_and_methods"><span class="tocnumber">11</span> <span class="toctext">Accounting periods and methods</span></a></li>
<li class="toclevel-1 tocsection-23"><a href="#Tax_exempt_entities"><span class="tocnumber">12</span> <span class="toctext">Tax exempt entities</span></a></li>
<li class="toclevel-1 tocsection-24"><a href="#Special_taxes"><span class="tocnumber">13</span> <span class="toctext">Special taxes</span></a></li>
<li class="toclevel-1 tocsection-25"><a href="#Special_industries"><span class="tocnumber">14</span> <span class="toctext">Special industries</span></a></li>
<li class="toclevel-1 tocsection-26"><a href="#International_aspects"><span class="tocnumber">15</span> <span class="toctext">International aspects</span></a></li>
<li class="toclevel-1 tocsection-27"><a href="#Social_Insurance_taxes"><span class="tocnumber">16</span> <span class="toctext">Social Insurance taxes</span></a></li>
<li class="toclevel-1 tocsection-28"><a href="#Withholding_of_tax"><span class="tocnumber">17</span> <span class="toctext">Withholding of tax</span></a></li>
<li class="toclevel-1 tocsection-29"><a href="#Tax_returns"><span class="tocnumber">18</span> <span class="toctext">Tax returns</span></a></li>
<li class="toclevel-1 tocsection-30"><a href="#Tax_examinations"><span class="tocnumber">19</span> <span class="toctext">Tax examinations</span></a>
<ul><li class="toclevel-2 tocsection-31"><a href="#Tax_collection"><span class="tocnumber">19.1</span> <span class="toctext">Tax collection</span></a></li>
</ul></li>
<li class="toclevel-1 tocsection-32"><a href="#Statute_of_limitations"><span class="tocnumber">20</span> <span class="toctext">Statute of limitations</span></a></li>
<li class="toclevel-1 tocsection-33"><a href="#Penalties"><span class="tocnumber">21</span> <span class="toctext">Penalties</span></a></li>
<li class="toclevel-1 tocsection-34"><a href="#History"><span class="tocnumber">22</span> <span class="toctext">History</span></a>
<ul><li class="toclevel-2 tocsection-35"><a href="#Constitutional"><span class="tocnumber">22.1</span> <span class="toctext">Constitutional</span></a></li>
<li class="toclevel-2 tocsection-36"><a href="#Early_federal_income_taxes"><span class="tocnumber">22.2</span> <span class="toctext">Early federal income taxes</span></a></li>
<li class="toclevel-2 tocsection-37"><a href="#Ratification_of_the_Sixteenth_Amendment"><span class="tocnumber">22.3</span> <span class="toctext">Ratification of the Sixteenth Amendment</span></a></li>
<li class="toclevel-2 tocsection-38"><a href="#Modern_interpretation_of_the_power_to_tax_incomes"><span class="tocnumber">22.4</span> <span class="toctext">Modern interpretation of the power to tax incomes</span></a></li>
<li class="toclevel-2 tocsection-39"><a href="#Income_tax_rates_in_history"><span class="tocnumber">22.5</span> <span class="toctext">Income tax rates in history</span></a>
<ul><li class="toclevel-3 tocsection-40"><a href="#History_of_top_rates"><span class="tocnumber">22.5.1</span> <span class="toctext">History of top rates</span></a></li>
<li class="toclevel-3 tocsection-41"><a href="#Federal_income_tax_rates"><span class="tocnumber">22.5.2</span> <span class="toctext">Federal income tax rates</span></a></li>
</ul></li>
</ul></li>
<li class="toclevel-1 tocsection-42"><a href="#Sources_of_U.S._income_tax_laws"><span class="tocnumber">23</span> <span class="toctext">Sources of U.S. income tax laws</span></a></li>
<li class="toclevel-1 tocsection-43"><a href="#The_complexity_of_the_U.S._income_tax_laws"><span class="tocnumber">24</span> <span class="toctext">The complexity of the U.S. income tax laws</span></a></li>
<li class="toclevel-1 tocsection-44"><a href="#State,_local_and_territorial_income_taxes"><span class="tocnumber">25</span> <span class="toctext">State, local and territorial income taxes</span></a></li>
<li class="toclevel-1 tocsection-45"><a href="#Controversies"><span class="tocnumber">26</span> <span class="toctext">Controversies</span></a>
<ul><li class="toclevel-2 tocsection-46"><a href="#Proposals_for_changes_of_income_taxation"><span class="tocnumber">26.1</span> <span class="toctext">Proposals for changes of income taxation</span></a></li>
<li class="toclevel-2 tocsection-47"><a href="#Alternatives"><span class="tocnumber">26.2</span> <span class="toctext">Alternatives</span></a></li>
<li class="toclevel-2 tocsection-48"><a href="#Taxation_vs._the_states"><span class="tocnumber">26.3</span> <span class="toctext">Taxation vs. the states</span></a></li>
<li class="toclevel-2 tocsection-49"><a href="#Tax_protestors"><span class="tocnumber">26.4</span> <span class="toctext">Tax protestors</span></a></li>
<li class="toclevel-2 tocsection-50"><a href="#Distribution"><span class="tocnumber">26.5</span> <span class="toctext">Distribution</span></a></li>
<li class="toclevel-2 tocsection-51"><a href="#Effects_on_income_inequality"><span class="tocnumber">26.6</span> <span class="toctext">Effects on income inequality</span></a></li>
</ul></li>
<li class="toclevel-1 tocsection-52"><a href="#See_also"><span class="tocnumber">27</span> <span class="toctext">See also</span></a></li>
<li class="toclevel-1 tocsection-53"><a href="#Notes"><span class="tocnumber">28</span> <span class="toctext">Notes</span></a></li>
<li class="toclevel-1 tocsection-54"><a href="#References"><span class="tocnumber">29</span> <span class="toctext">References</span></a></li>
<li class="toclevel-1 tocsection-55"><a href="#Further_reading"><span class="tocnumber">30</span> <span class="toctext">Further reading</span></a></li>
</ul></div>

</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(1)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Basics">Basics</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=1" title="Edit section: Basics" data-section="1" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-1 collapsible-block" id="mf-section-1">
<p>A tax is imposed on net <a href="/wiki/Taxable_income" title="Taxable income">taxable income</a> in the United States by the federal, most state, and some local governments.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1">[1]</a></sup> Income tax is imposed on individuals, corporations, estates, and trusts.<sup id="cite_ref-2" class="reference"><a href="#cite_note-2">[2]</a></sup> The definition of net taxable income for most sub-federal jurisdictions mostly follows the federal definition.<sup id="cite_ref-3" class="reference"><a href="#cite_note-3">[3]</a></sup></p><p>The rate of tax at the federal level is graduated; that is, the tax rates on higher amounts of income are higher than on lower amounts. <a rel="nofollow" class="external text" href="https://www.irs.gov/irb/2018-10_IRB#RP-2018-18">Federal tax rates in 2018</a> varied from 10% to 37%. Some states and localities impose an income tax at a graduated rate, and some at a flat rate on all taxable income.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4">[4]</a></sup></p><p>Individuals are eligible for a reduced rate of federal income tax on <a href="/wiki/Capital_gains_tax_in_the_United_States" title="Capital gains tax in the United States">capital gains</a> and <a href="/wiki/Qualified_dividend" title="Qualified dividend">qualifying dividends</a>. The tax rate and some deductions are different for individuals depending on <a rel="nofollow" class="external text" href="https://www.irs.gov/newsroom/correct-filing-status">filing status</a>. Married individuals may compute tax as a couple or separately. Single individuals may be eligible for reduced tax rates if they are head of a household in which they live with a dependent.
</p><p><b>Taxable income</b> is defined in a comprehensive manner in the <a href="/wiki/Internal_Revenue_Code" title="Internal Revenue Code">Internal Revenue Code</a> and tax regulations issued by the Department of Treasury and the <a href="/wiki/Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a>.<sup id="cite_ref-5" class="reference"><a href="#cite_note-5">[5]</a></sup>  Taxable income is <a href="/wiki/Gross_income" title="Gross income">gross income</a> as adjusted minus <a href="/wiki/Tax_deduction" title="Tax deduction">deductions</a>.  Most states and localities follow these definitions at least in part,<sup id="cite_ref-6" class="reference"><a href="#cite_note-6">[6]</a></sup> though some make adjustments to determine income taxed in that jurisdiction.  Taxable income for a company or business may not be the same as its book income.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7">[7]</a></sup></p><p><b>Gross income</b> includes <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:61%20edition:prelim)">all income earned or received from whatever source</a>. This includes salaries and wages, tips, pensions, fees earned for services, price of goods sold, other business income, gains on sale of other property, rents received, interest and <a href="/wiki/Dividend" title="Dividend">dividends</a> received, proceeds from selling crops, and many other types of income.  Some income, such as municipal bond interest, is <a href="/wiki/Tax_exemption#exempt_income" title="Tax exemption">exempt from income tax</a>.
</p>
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:Federal_Receipts_by_Source.svg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/7/78/Federal_Receipts_by_Source.svg/220px-Federal_Receipts_by_Source.svg.png" decoding="async" width="220" height="165" class="thumbimage" data-file-width="800" data-file-height="600"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 165px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/7/78/Federal_Receipts_by_Source.svg/220px-Federal_Receipts_by_Source.svg.png" data-alt="" data-width="220" data-height="165" data-srcset="//upload.wikimedia.org/wikipedia/commons/thumb/7/78/Federal_Receipts_by_Source.svg/330px-Federal_Receipts_by_Source.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/7/78/Federal_Receipts_by_Source.svg/440px-Federal_Receipts_by_Source.svg.png 2x" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Federal_Receipts_by_Source.svg" class="internal" title="Enlarge"></a></div>Federal receipts by source as share of total receipts (1950–2010). Individual income taxes (blue), payroll taxes/FICA (green), corporate income taxes (red), excise taxes (purple), estate and gift taxes (light blue), other receipts (orange).<sup id="cite_ref-8" class="reference"><a href="#cite_note-8">[8]</a></sup></div></div></div>
<p><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040s1.pdf"><b>Adjustments</b> (usually reductions) to gross income</a> of individuals are made for contributions to many types of retirement or health savings plans, certain student loan interest, half of self-employment tax, and a few other items.  The <a href="/wiki/Cost_of_goods_sold" title="Cost of goods sold">cost of goods sold</a> in a business is a direct reduction of gross income.
</p><p><b>Business deductions</b>: Taxable income of all taxpayers is reduced by <a href="/wiki/Tax_deductions" class="mw-redirect" title="Tax deductions">deductions</a> for expenses related to their business.  These include salaries, rent, and other business expenses paid or accrued, as well as allowances for <a href="/wiki/MACRS" title="MACRS">depreciation</a>.  The deduction of expenses <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p536.pdf">may result in a loss</a>.  Generally, such loss can reduce other taxable income, subject to some limits.
</p><p><b>Personal deductions</b>: The former deduction for personal exemptions was <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:151%20edition:prelim)">repealed for 2018 through 2025</a>.
</p><p><b>Standard deduction</b>: In addition, individuals get a deduction from taxable income for certain personal expenses.  Alternatively, the individual may claim a <a href="/wiki/Standard_deduction" title="Standard deduction">standard deduction</a>.  <a rel="nofollow" class="external text" href="https://www.irs.gov/irb/2018-10_IRB#RP-2018-18">For 2018, the standard deduction</a> was $12,000 for single individuals, $24,000 for a married couple, and $18,000 for a head of household.
</p><p><b>Itemized deductions</b>: Those who choose to claim actual <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040sa.pdf">itemized deductions</a> may deduct the following, subject to many conditions and limitations:
</p>
<ul><li>Medical expenses in excess of 10% of adjusted gross income,<sup id="cite_ref-9" class="reference"><a href="#cite_note-9">[9]</a></sup></li>
<li>Certain taxes <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:164%20edition:prelim)">limited to $10,000 or $5,000 in 2018 through 2025</a>,</li>
<li>Home mortgage interest,</li>
<li>Contributions to charities,</li>
<li>Losses on nonbusiness property due to casualty, and</li>
<li>Deductions for expenses incurred in the production of income in excess of 2% of adjusted gross income.</li></ul><p><b>Capital gains</b>: and <a href="/wiki/Qualified_dividend" title="Qualified dividend">qualified dividends</a> may be taxed as part of taxable income.  However, the tax is limited to a lower tax rate.  <a href="/wiki/Capital_gains_tax_in_the_United_States" title="Capital gains tax in the United States">Capital gains</a> include gains on selling stocks and bonds, real estate, and other capital assets.  The gain is the excess of the proceeds over the adjusted <a href="/wiki/Tax_basis" title="Tax basis">tax basis</a> (cost less [[MACRS|depreciation deductions] allowed) of the property.  This lower rate of tax also applies to dividends from U.S. corporations and many foreign corporations.  There are limits on how much net capital loss may reduce other taxable income.
</p>
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:USTaxRevenue1945-2011.jpeg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/2/2d/USTaxRevenue1945-2011.jpeg/220px-USTaxRevenue1945-2011.jpeg" decoding="async" width="220" height="170" class="thumbimage" data-file-width="641" data-file-height="496"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 170px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/2/2d/USTaxRevenue1945-2011.jpeg/220px-USTaxRevenue1945-2011.jpeg" data-alt="" data-width="220" data-height="170" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:USTaxRevenue1945-2011.jpeg" class="internal" title="Enlarge"></a></div>Total U.S. Tax Revenue as a % of GDP and Income Tax Revenue as a % of GDP, 1945–2011, from Office of Management and Budget Historicals</div></div></div>
<p><b>Tax credits</b>: All taxpayers are allowed a <a href="/wiki/Tax_credit" title="Tax credit">credit</a> for <a href="/wiki/Foreign_tax_credit" title="Foreign tax credit">foreign taxes</a> and for a percentage of <a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/small-businesses-self-employed/business-tax-credits">certain types of business expenses</a>.  Individuals are also allowed <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040s3.pdf">credits</a> related to education expenses, retirement savings, and child care expenses.  Each of the credits is subject to specific rules and limitations.  Some credits are treated as refundable payments.
</p><p><b>Alternative Minimum Tax</b>: All taxpayers are also subject to the <a href="/wiki/Alternative_Minimum_Tax" class="mw-redirect" title="Alternative Minimum Tax">Alternative Minimum Tax</a> if their income exceeds certain exclusion amounts. This tax applies only if it exceeds regular income tax, and is reduced by some credits.
</p><p><b>Additional Medicare Tax</b>: High-income earners may also have to pay an additional 0.9% tax on wages, compensation, and self-employment income.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10">[10]</a></sup></p><p><b>Net Investment Income</b> is subject to an <a rel="nofollow" class="external text" href="https://www.irs.gov/individuals/net-investment-income-tax">additional 3.8% tax</a> for individuals with income in excess of certain thresholds.
</p><p><b>Tax returns</b>: U.S. corporations and most resident individuals must file <a href="/wiki/Tax_return_(United_States)" title="Tax return (United States)">income tax returns</a> to self assess income tax if any tax is due or to claim a <a href="/wiki/Tax_refund" title="Tax refund">tax refund</a>.  Some taxpayers must file an income tax return because they satisfy one of the several other conditions.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11">[11]</a></sup> Tax returns may be <a rel="nofollow" class="external text" href="https://www.irs.gov/e-file-providers/e-file-overview">filed electronically</a>. Generally, an individual's <a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/small-businesses-self-employed/tax-years">tax return covers the calendar year. Corporations may elect a different tax year</a>. Most states and localities follow the federal tax year, and require separate returns.
</p><p><b>Tax payment</b>: Taxpayers must <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:6151%20edition:prelim">pay income tax</a> due without waiting for an assessment.  Many taxpayers are subject to <a href="/wiki/Withholding_tax" title="Withholding tax">withholding taxes</a> when they receive income. To the extent withholding taxes do not cover all taxes due, all taxpayers must make <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:6154%20edition:prelim">estimated tax payments</a> or face penalties.
</p><p><b>Tax penalties</b>: Failing to make payments on time, or failing to file returns, can result in substantial <a href="/wiki/IRS_penalties" title="IRS penalties">penalties</a>. Certain intentional failures may result in jail time.
</p><p>Tax returns may be <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p3498.pdf">examined and adjusted</a> by tax authorities. Taxpayers have <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p5.pdf">rights to appeal</a> any change to tax, and these rights vary by jurisdiction. Taxpayers may also go to court to contest tax changes. Tax authorities may not make changes after a certain period of time (generally three or four years from the tax return due date).
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(2)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Federal_income_tax_rates_for_individuals">Federal income tax rates for individuals</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=2" title="Edit section: Federal income tax rates for individuals" data-section="2" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-2 collapsible-block" id="mf-section-2">
<div class="thumb tright"><div class="thumbinner" style="width:302px;"><a href="/wiki/File:2010_US_Tax_Liability_by_Income_Group_-_CBO.png" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/2010_US_Tax_Liability_by_Income_Group_-_CBO.png/300px-2010_US_Tax_Liability_by_Income_Group_-_CBO.png" decoding="async" width="300" height="194" class="thumbimage" data-file-width="995" data-file-height="644"></noscript><span class="lazy-image-placeholder" style="width: 300px;height: 194px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/2010_US_Tax_Liability_by_Income_Group_-_CBO.png/300px-2010_US_Tax_Liability_by_Income_Group_-_CBO.png" data-alt="" data-width="300" data-height="194" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:2010_US_Tax_Liability_by_Income_Group_-_CBO.png" class="internal" title="Enlarge"></a></div>As of 2010, 68.8% of Federal individual tax receipts including payroll taxes, were paid by the top 20% of taxpayers by income group - which earned 50% of all household income.  The top 1%, which took home 19.3% paid 24.2% whereas the bottom 20% paid 0.4% due to deductions and the <a href="/wiki/Earned_income_tax_credit" title="Earned income tax credit">earned income tax credit</a>.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12">[12]</a></sup><sup id="cite_ref-CBO_13-0" class="reference"><a href="#cite_note-CBO-13">[13]</a></sup></div></div></div><p>Federal income brackets and tax rates for individuals are adjusted annually for inflation. The <a href="/wiki/Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a> (IRS) accounts for changes to the <a href="/wiki/United_States_Consumer_Price_Index" title="United States Consumer Price Index">CPI</a><sup id="cite_ref-Tax_Foundation_14-0" class="reference"><a href="#cite_note-Tax_Foundation-14">[14]</a></sup> and publishes the new rates as "<a href="/wiki/Rate_schedule_(federal_income_tax)" title="Rate schedule (federal income tax)">Tax Rate Schedules</a>".
</p><p>As of 2010<sup class="plainlinks noexcerpt noprint asof-tag update" style="display:none;"><a class="external text" href="https://en.wikipedia.org/w/index.php?title=Income_tax_in_the_United_States&action=edit">[update]</a></sup>, 68.8% of Federal individual tax receipts including payroll taxes, were paid by the top 20% of taxpayers by income group.<sup id="cite_ref-Tax_Foundation_14-1" class="reference"><a href="#cite_note-Tax_Foundation-14">[14]</a></sup> This accounts for the fact that a tax cut tends to "benefit the rich" since they are the ones paying most of the taxes.<sup id="cite_ref-15" class="reference"><a href="#cite_note-15">[15]</a></sup></p>
<h3 class="in-block"><span class="mw-headline" id="Marginal_tax_rates">Marginal tax rates</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=3" title="Edit section: Marginal tax rates" data-section="3" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div class="thumb tright"><div class="thumbinner" style="width:302px;"><a href="/wiki/File:U.S._Federal_Income_Tax_Rates.png" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/7/7f/U.S._Federal_Income_Tax_Rates.png/300px-U.S._Federal_Income_Tax_Rates.png" decoding="async" width="300" height="200" class="thumbimage" data-file-width="1724" data-file-height="1149"></noscript><span class="lazy-image-placeholder" style="width: 300px;height: 200px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/7/7f/U.S._Federal_Income_Tax_Rates.png/300px-U.S._Federal_Income_Tax_Rates.png" data-alt="" data-width="300" data-height="200" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:U.S._Federal_Income_Tax_Rates.png" class="internal" title="Enlarge"></a></div>Marginal and effective federal income tax rates in the U.S. for 2018.</div></div></div>
<h4 class="in-block"><span class="mw-headline" id="Marginal_tax_rates_since_2008">Marginal tax rates since 2008</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=4" title="Edit section: Marginal tax rates since 2008" data-section="4" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h4>
<table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2008
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-IRS.gov_16-0" class="reference"><a href="#cite_note-IRS.gov-16">[16]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,025</td>
<td>$0 – $16,050</td>
<td>$0 – $8,025</td>
<td>$0 – $11,450
</td></tr><tr><th>15%
</th>
<td>$8,025 – $32,550</td>
<td>$16,050 – $65,100</td>
<td>$8,025 – $32,550</td>
<td>$11,450 – $43,650
</td></tr><tr><th>25%
</th>
<td>$32,550 – $78,850</td>
<td>$65,100 – $131,450</td>
<td>$32,550 – $65,725</td>
<td>$43,650 – $112,650
</td></tr><tr><th>28%
</th>
<td>$78,850 – $164,550</td>
<td>$131,450 – $200,300</td>
<td>$65,725 – $100,150</td>
<td>$112,650 – $182,400
</td></tr><tr><th>33%
</th>
<td>$164,550 – $357,700</td>
<td>$200,300 – $357,700</td>
<td>$100,150 – $178,850</td>
<td>$182,400 – $357,700
</td></tr><tr><th>35%
</th>
<td>$357,700+</td>
<td>$357,700+</td>
<td>$178,850+</td>
<td>$357,700+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2009
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-IRS.gov_16-1" class="reference"><a href="#cite_note-IRS.gov-16">[16]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,350</td>
<td>$0 – $16,700</td>
<td>$0 – $8,350</td>
<td>$0 – $11,950
</td></tr><tr><th>15%
</th>
<td>$8,351 – $33,950</td>
<td>$16,701 – $67,900</td>
<td>$8,351 – $33,950</td>
<td>$11,951 – $45,500
</td></tr><tr><th>25%
</th>
<td>$33,951 – $82,250</td>
<td>$67,901 – $137,050</td>
<td>$33,951 – $68,525</td>
<td>$45,501 – $117,450
</td></tr><tr><th>28%
</th>
<td>$82,251 – $171,550</td>
<td>$137,051 – $208,850</td>
<td>$68,526 – $104,425</td>
<td>$117,451 – $190,200
</td></tr><tr><th>33%
</th>
<td>$171,551 – $372,950</td>
<td>$208,851 – $372,950</td>
<td>$104,426 – $186,475</td>
<td>$190,201 – $372,950
</td></tr><tr><th>35%
</th>
<td>$372,951+</td>
<td>$372,951+</td>
<td>$186,476+</td>
<td>$372,951+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2010
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-17" class="reference"><a href="#cite_note-17">[17]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,375</td>
<td>$0 – $16,750</td>
<td>$0 – $8,375</td>
<td>$0 – $11,950
</td></tr><tr><th>15%
</th>
<td>$8,376 – $34,000</td>
<td>$16,751 – $68,000</td>
<td>$8,376 – $34,000</td>
<td>$11,951 – $45,550
</td></tr><tr><th>25%
</th>
<td>$34,001 – $82,400</td>
<td>$68,001 – $137,300</td>
<td>$34,001 – $68,650</td>
<td>$45,551 – $117,650
</td></tr><tr><th>28%
</th>
<td>$82,401 – $171,850</td>
<td>$137,301 – $209,250</td>
<td>$68,651 – $104,625</td>
<td>$117,651 – $190,550
</td></tr><tr><th>33%
</th>
<td>$171,851 – $373,650</td>
<td>$209,251 – $373,650</td>
<td>$104,626 – $186,825</td>
<td>$190,551 – $373,650
</td></tr><tr><th>35%
</th>
<td>$373,651+</td>
<td>$373,651+</td>
<td>$186,826+</td>
<td>$373,651+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2011
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-18" class="reference"><a href="#cite_note-18">[18]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,500</td>
<td>$0 – $17,000</td>
<td>$0 – $8,500</td>
<td>$0 – $12,150
</td></tr><tr><th>15%
</th>
<td>$8,501 – $34,500</td>
<td>$17,001 – $69,000</td>
<td>$8,501 – $34,500</td>
<td>$12,151 – $46,250
</td></tr><tr><th>25%
</th>
<td>$34,501 – $83,600</td>
<td>$69,001 – $139,350</td>
<td>$34,501 – $69,675</td>
<td>$46,251 – $119,400
</td></tr><tr><th>28%
</th>
<td>$83,601 – $174,400</td>
<td>$139,351 – $212,300</td>
<td>$69,676 – $106,150</td>
<td>$119,401 – $193,350
</td></tr><tr><th>33%
</th>
<td>$174,401 – $379,150</td>
<td>$212,301 – $379,150</td>
<td>$106,151 – $189,575</td>
<td>$193,351 – $379,150
</td></tr><tr><th>35%
</th>
<td>$379,151+</td>
<td>$379,151+</td>
<td>$189,576+</td>
<td>$379,151+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2012
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-19" class="reference"><a href="#cite_note-19">[19]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,700</td>
<td>$0 – $17,400</td>
<td>$0 – $8,700</td>
<td>$0 – $12,400
</td></tr><tr><th>15%
</th>
<td>$8,701 – $35,350</td>
<td>$17,401 – $70,700</td>
<td>$8,701 – $35,350</td>
<td>$12,401 – $47,350
</td></tr><tr><th>25%
</th>
<td>$35,351 – $85,650</td>
<td>$70,701 – $142,700</td>
<td>$35,351 – $71,350</td>
<td>$47,351 – $122,300
</td></tr><tr><th>28%
</th>
<td>$85,651 – $178,650</td>
<td>$142,701 – $217,450</td>
<td>$71,351 – $108,725</td>
<td>$122,301 – $198,050
</td></tr><tr><th>33%
</th>
<td>$178,651 – $388,350</td>
<td>$217,451 – $388,350</td>
<td>$108,726 – $194,175</td>
<td>$198,051 – $388,350
</td></tr><tr><th>35%
</th>
<td>$388,351+</td>
<td>$388,351+</td>
<td>$194,176+</td>
<td>$388,351+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2013
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-20" class="reference"><a href="#cite_note-20">[20]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $8,925</td>
<td>$0 – $17,850</td>
<td>$0 – $8,925</td>
<td>$0 – $12,750
</td></tr><tr><th>15%
</th>
<td>$8,926 – $36,250</td>
<td>$17,851 – $72,500</td>
<td>$8,926 – $36,250</td>
<td>$12,751 – $48,600
</td></tr><tr><th>25%
</th>
<td>$36,251 – $87,850</td>
<td>$72,501 – $146,400</td>
<td>$36,251 – $73,200</td>
<td>$48,601 – $125,450
</td></tr><tr><th>28%
</th>
<td>$87,851 – $183,250</td>
<td>$146,401 – $223,050</td>
<td>$73,201 – $111,525</td>
<td>$125,451 – $203,150
</td></tr><tr><th>33%
</th>
<td>$183,251 – $398,350</td>
<td>$223,051 – $398,350</td>
<td>$111,526 – $199,175</td>
<td>$203,151 – $398,350
</td></tr><tr><th>35%
</th>
<td>$398,351 – $400,000</td>
<td>$398,351 – $450,000</td>
<td>$199,176 – $225,000</td>
<td>$398,351 – $425,000
</td></tr><tr><th>39.6%
</th>
<td>$400,001+</td>
<td>$450,001+</td>
<td>$225,001+</td>
<td>$425,001+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2014
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-21" class="reference"><a href="#cite_note-21">[21]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $9,075</td>
<td>$0 – $18,150</td>
<td>$0 – $9,075</td>
<td>$0 – $12,950
</td></tr><tr><th>15%
</th>
<td>$9,076 – $36,900</td>
<td>$18,151 – $73,800</td>
<td>$9,076 – $36,900</td>
<td>$12,951 – $49,100
</td></tr><tr><th>25%
</th>
<td>$36,901 – $89,350</td>
<td>$73,801 – $148,850</td>
<td>$36,901 – $74,425</td>
<td>$49,101 – $127,550
</td></tr><tr><th>28%
</th>
<td>$89,351 – $186,350</td>
<td>$148,851 – $226,850</td>
<td>$74,426 – $113,425</td>
<td>$127,551 – $206,600
</td></tr><tr><th>33%
</th>
<td>$186,351 – $405,100</td>
<td>$226,851 – $405,100</td>
<td>$113,426 – $202,550</td>
<td>$206,601 – $405,100
</td></tr><tr><th>35%
</th>
<td>$405,101 – $406,750</td>
<td>$405,101 – $457,600</td>
<td>$202,551 – $228,800</td>
<td>$405,101 – $432,200
</td></tr><tr><th>39.6%
</th>
<td>$406,751+</td>
<td>$457,601+</td>
<td>$228,801+</td>
<td>$432,201+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2015
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-22" class="reference"><a href="#cite_note-22">[22]</a></sup></th>
<th width="120">Single
</th>
<th width="120">Married Filing Jointly or Qualified Widow(er)
</th>
<th width="120">Married Filing Separately
</th>
<th width="120">Head of Household
</th></tr><tr><th>10%
</th>
<td>$0 – $9,225</td>
<td>$0 – $18,450</td>
<td>$0 – $9,225</td>
<td>$0 – $13,150
</td></tr><tr><th>15%
</th>
<td>$9,226 – $37,450</td>
<td>$18,451 – $74,900</td>
<td>$9,226 – $37,450</td>
<td>$13,151 – $50,200
</td></tr><tr><th>25%
</th>
<td>$37,451 – $90,750</td>
<td>$74,901 – $151,200</td>
<td>$37,451 – $75,600</td>
<td>$50,201 – $129,600
</td></tr><tr><th>28%
</th>
<td>$90,751 – $189,300</td>
<td>$151,201 – $230,450</td>
<td>$75,601 – $115,225</td>
<td>$129,601 – $209,850
</td></tr><tr><th>33%
</th>
<td>$189,301 – $411,500</td>
<td>$230,451 – $411,500</td>
<td>$115,226 – $205,750</td>
<td>$209,851 – $411,500
</td></tr><tr><th>35%
</th>
<td>$411,501 – $413,200</td>
<td>$411,501 – $464,850</td>
<td>$205,751 – $232,425</td>
<td>$411,501 – $439,000
</td></tr><tr><th>39.6%
</th>
<td>$413,201+</td>
<td>$464,851+</td>
<td>$232,426+</td>
<td>$439,001+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2016
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-23" class="reference"><a href="#cite_note-23">[23]</a></sup></th>
<th width="180">Single Taxable Income
</th>
<th width="180">Married Filing Jointly or Qualified Widow(er) Taxable Income
</th>
<th width="180">Married Filing Separately Taxable Income
</th>
<th width="180">Head of Household Taxable Income
</th></tr><tr><th>10%
</th>
<td>$0 – $9,275</td>
<td>$0 – $18,550</td>
<td>$0 – $9,275</td>
<td>$0 – $13,250
</td></tr><tr><th>15%
</th>
<td>$9,276 – $37,650</td>
<td>$18,551 – $75,300</td>
<td>$9,276 – $37,650</td>
<td>$13,251 – $50,400
</td></tr><tr><th>25%
</th>
<td>$37,651 – $91,150</td>
<td>$75,301 – $151,900</td>
<td>$37,651 – $75,950</td>
<td>$50,401 – $130,150
</td></tr><tr><th>28%
</th>
<td>$91,151 – $190,150</td>
<td>$151,901 – $231,450</td>
<td>$75,951 – $115,725</td>
<td>$130,151 – $210,800
</td></tr><tr><th>33%
</th>
<td>$190,151 – $413,350</td>
<td>$231,451 – $413,350</td>
<td>$115,726 – $206,675</td>
<td>$210,801 – $413,350
</td></tr><tr><th>35%
</th>
<td>$413,351 – $415,050</td>
<td>$413,351 – $466,950</td>
<td>$206,676 – $233,475</td>
<td>$413,351 – $441,000
</td></tr><tr><th>39.6%
</th>
<td>$415,051+</td>
<td>$466,951+</td>
<td>$233,476+</td>
<td>$441,001+
</td></tr></tbody></table><table class="wikitable collapsible collapsed" style="margin:0 0 1em 1em; font-size: 90%;"><tbody><tr><th colspan="5">Marginal Tax Rates and Income Brackets for 2017
</th></tr><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-24" class="reference"><a href="#cite_note-24">[24]</a></sup></th>
<th width="180">Single Taxable Income
</th>
<th width="180">Married Filing Jointly or Qualified Widow(er) Taxable Income
</th>
<th width="180">Married Filing Separately Taxable Income
</th>
<th width="180">Head of Household Taxable Income
</th></tr><tr><th>10%
</th>
<td>$0 – $9,325</td>
<td>$0 – $18,650</td>
<td>$0 – $9,325</td>
<td>$0 – $13,350
</td></tr><tr><th>15%
</th>
<td>$9,326 – $37,950</td>
<td>$18,651 – $75,900</td>
<td>$9,326 – $37,950</td>
<td>$13,351 – $50,800
</td></tr><tr><th>25%
</th>
<td>$37,951 – $91,900</td>
<td>$75,901 – $153,100</td>
<td>$37,951 – $76,550</td>
<td>$50,801 – $131,200
</td></tr><tr><th>29%
</th>
<td>$91,901 – $191,650</td>
<td>$153,101 – $233,350</td>
<td>$76,551 – $116,675</td>
<td>$131,201 – $212,500
</td></tr><tr><th>33%
</th>
<td>$191,651 – $416,700</td>
<td>$233,351 – $416,700</td>
<td>$116,676 – $208,350</td>
<td>$212,501 – $416,700
</td></tr><tr><th>35%
</th>
<td>$416,701 – $418,400</td>
<td>$416,701 – $470,700</td>
<td>$208,351 – $235,350</td>
<td>$416,701 – $444,550
</td></tr><tr><th>39.6%
</th>
<td>$418,401+</td>
<td>$470,701+</td>
<td>$235,351+</td>
<td>$444,501+
</td></tr></tbody></table><p>Beginning in 2013, an additional tax of 3.8% applies to net investment income in excess of certain thresholds.<sup id="cite_ref-25" class="reference"><a href="#cite_note-25">[25]</a></sup></p>
<h4 class="in-block"><span class="mw-headline" id="Marginal_tax_rates_for_2018">Marginal tax rates for 2018</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=5" title="Edit section: Marginal tax rates for 2018" data-section="5" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h4>
<table class="wikitable" style="text-align:right"><tbody><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-congress.gov_26-0" class="reference"><a href="#cite_note-congress.gov-26">[26]</a></sup></th>
<th width="180">Single Taxable Income
</th>
<th width="180">Married Filing Jointly or Qualified Widow(er) Taxable Income
</th>
<th width="180">Married Filing Separately Taxable Income
</th>
<th width="180">Head of Household Taxable Income
</th></tr><tr><th>10%
</th>
<td>$0 – $9,525</td>
<td>$0 – $19,050</td>
<td>$0 – $9,525</td>
<td>$0 – $13,600
</td></tr><tr><th>12%
</th>
<td>$9,526 – $38,700</td>
<td>$19,051 – $77,400</td>
<td>$9,526 – $38,700</td>
<td>$13,601 – $51,800
</td></tr><tr><th>22%
</th>
<td>$38,701 – $82,500</td>
<td>$77,401 – $165,000</td>
<td>$38,701 – $82,500</td>
<td>$51,801 – $82,500
</td></tr><tr><th>24%
</th>
<td>$82,501 – $157,500</td>
<td>$165,001 – $315,000</td>
<td>$82,501 – $157,500</td>
<td>$82,501 – $157,500
</td></tr><tr><th>32%
</th>
<td>$157,501 – $200,000</td>
<td>$315,001 – $400,000</td>
<td>$157,501 – $200,000</td>
<td>$157,501 – $200,000
</td></tr><tr><th>35%
</th>
<td>$200,001 – $500,000</td>
<td>$400,001 – $600,000</td>
<td>$200,001 – $300,000</td>
<td>$200,001 – $500,000
</td></tr><tr><th>37%
</th>
<td>$500,001+</td>
<td>$600,001+</td>
<td>$300,001+</td>
<td>$500,001+
</td></tr></tbody></table><h4 class="in-block"><span class="mw-headline" id="Marginal_tax_rates_for_2019">Marginal tax rates for 2019</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=6" title="Edit section: Marginal tax rates for 2019" data-section="6" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h4>
<table class="wikitable" style="text-align:right"><tbody><tr><th width="70">Marginal Tax Rate<sup id="cite_ref-2019_tax_rates_27-0" class="reference"><a href="#cite_note-2019_tax_rates-27">[27]</a></sup></th>
<th width="180">Single Taxable Income
</th>
<th width="180">Married Filing Jointly or Qualified Widow(er) Taxable Income
</th>
<th width="180">Married Filing Separately Taxable Income
</th>
<th width="180">Head of Household Taxable Income
</th></tr><tr><th>10%
</th>
<td>$0 – $9,700</td>
<td>$0 – $19,400</td>
<td>$0 – $9,700</td>
<td>$0 – $13,850
</td></tr><tr><th>12%
</th>
<td>$9,701 – $39,475</td>
<td>$19,401 – $78,950</td>
<td>$9,701 – $39,475</td>
<td>$13,851 – $52,850
</td></tr><tr><th>22%
</th>
<td>$39,476 – $84,200</td>
<td>$78,951 – $168,400</td>
<td>$39,476 – $84,200</td>
<td>$52,851 – $84,200
</td></tr><tr><th>24%
</th>
<td>$84,201 – $160,725</td>
<td>$168,401 – $321,450</td>
<td>$84,201 – $160,725</td>
<td>$84,201 – $160,700
</td></tr><tr><th>32%
</th>
<td>$160,726 – $204,100</td>
<td>$321,451 – $408,200</td>
<td>$160,726 – $204,100</td>
<td>$160,701 – $204,100
</td></tr><tr><th>35%
</th>
<td>$204,101 – $510,300</td>
<td>$408,201 – $612,350</td>
<td>$204,101 – $306,175</td>
<td>$204,101 – $510,300
</td></tr><tr><th>37%
</th>
<td>$510,301+</td>
<td>$612,351+</td>
<td>$306,176+</td>
<td>$510,301+
</td></tr></tbody></table><p>An individual pays tax at a given bracket only for each dollar within that <a href="/wiki/Tax_bracket" title="Tax bracket">tax bracket</a>'s range. The top marginal rate does not apply in certain years to certain types of income. Significantly lower rates apply after 2003 to capital gains and qualifying dividends (see below).
</p>
<h3 class="in-block"><span class="mw-headline" id="Example_of_a_tax_computation">Example of a tax computation</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=7" title="Edit section: Example of a tax computation" data-section="7" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Income tax for year 2017:
</p><p>Single taxpayer making $40,000 gross income, no children, under 65 and not blind, taking standard deduction;
</p>
<ul><li>$40,000 gross income – $6,350 <a href="/wiki/Standard_deduction" title="Standard deduction">standard deduction</a> – $4,050 <a href="/wiki/Personal_exemption_(United_States)" class="mw-redirect" title="Personal exemption (United States)">personal exemption</a> = $29,600 taxable income
<ul><li>amount in the first income bracket = $9,325;  taxation of the amount in the first income bracket = $9,325 × 10% = $932.50</li>
<li>amount in the second income bracket = $29,600 – $9,325 = $20,275.00;  taxation of the amount in the second income bracket = $20,275.00 × 15% = $3,041.25</li></ul></li>
<li>Total income tax is $932.50 + $3,041.25 = $3,973.75 (~9.93% <a href="/wiki/Tax_rate#Effective" title="Tax rate">effective tax</a>)</li></ul><p>Note, however, that taxpayers with taxable income of less than $100,000 must use IRS provided tax tables.  Under that table for 2016, the income tax in the above example would be $3,980.00.<sup id="cite_ref-28" class="reference"><a href="#cite_note-28">[28]</a></sup></p><p>In addition to income tax, a wage earner would also have to pay <a href="/wiki/Federal_Insurance_Contributions_Act_tax" title="Federal Insurance Contributions Act tax">Federal Insurance Contributions Act tax</a> (FICA) (and an equal amount of FICA tax must be paid by the employer):
</p>
<ul><li>$40,000 (adjusted gross income)
<ul><li>$40,000 × 6.2%<sup id="cite_ref-29" class="reference"><a href="#cite_note-29">[29]</a></sup> = $2,480 (Social Security portion)</li>
<li>$40,000 × 1.45% = $580 (Medicare portion)</li></ul></li>
<li>Total FICA tax paid by employee = $3,060 (7.65% of income)</li>
<li>Total federal tax of individual = $3,973.75 + $3,060.00 = $7,033.75 (~17.58% of income)</li></ul><p>Total federal tax including employer's contribution:
</p>
<ul><li>Total FICA tax contributed by employer = $3,060 (7.65% of income)</li>
<li>Total federal tax of individual including employer's contribution = $3,973.75 + $3,060.00 + $3,060.00 = $10,093.75 (~25.23% of income)</li></ul><div role="note" class="hatnote navigation-not-searchable">Further information: <a href="/wiki/Rate_schedule_(federal_income_tax)" title="Rate schedule (federal income tax)">Rate schedule (federal income tax)</a></div>
<h3 class="in-block"><span class="mw-headline" id="Effective_income_tax_rates">Effective income tax rates</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=8" title="Edit section: Effective income tax rates" data-section="8" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Effective tax rates are typically lower than marginal rates due to various deductions, with some people actually having a negative liability. The individual income tax rates in the following chart include capital gains taxes, which have different marginal rates than regular income.<sup id="cite_ref-CBO_13-1" class="reference"><a href="#cite_note-CBO-13">[13]</a></sup><sup id="cite_ref-30" class="reference"><a href="#cite_note-30">[30]</a></sup> Only the first $118,500 of someone's income is subject to social insurance (Social Security) taxes in 2016.  The table below also does not reflect changes, effective with 2013 law, which increased the average tax paid by the top 1% to the highest levels since 1979, at an effective rate of 33%, while most other taxpayers have remained near the lowest levels since 1979.<sup id="cite_ref-31" class="reference"><a href="#cite_note-31">[31]</a></sup></p>
<table class="wikitable" style="text-align:right"><tbody><tr><th colspan="6">Effective Federal Tax Rates and Average Incomes for 2010<sup id="cite_ref-CBO_13-2" class="reference"><a href="#cite_note-CBO-13">[13]</a></sup></th></tr><tr><th width="100">Quintile
</th>
<th width="160">Average Income Before Taxes
</th>
<th width="160">Effective Individual Income Tax Rate
</th>
<th width="160">Effective Payroll Tax Rate
</th>
<th width="160">Combined Effective Income and Payroll Tax Rate
</th>
<th width="160">Total Effective Federal Tax Rate (includes corporate income and excise taxes)
</th></tr><tr><th>Lowest
</th>
<td>$24,100</td>
<td>−9.2%</td>
<td>8.4%</td>
<td>−0.8%</td>
<td>1.5%
</td></tr><tr><th>Second
</th>
<td>$44,200</td>
<td>−2.3%</td>
<td>7.8%</td>
<td>5.5%</td>
<td>7.2%
</td></tr><tr><th>Middle
</th>
<td>$65,400</td>
<td>1.6%</td>
<td>8.3%</td>
<td>9.9%</td>
<td>11.5%
</td></tr><tr><th>Fourth
</th>
<td>$95,500</td>
<td>5.0%</td>
<td>9.0%</td>
<td>14.0%</td>
<td>15.6%
</td></tr><tr><th>Highest
</th>
<td>$239,100</td>
<td>13.8%</td>
<td>6.7%</td>
<td>20.5%</td>
<td>24.0%
</td></tr><tr><th>
</th>
<td colspan="3" style="text-align: right;">
</td></tr><tr><th>81st to 90th Percentiles
</th>
<td>$134,600</td>
<td>8.1%</td>
<td>9.4%</td>
<td>17.5%</td>
<td>19.3%
</td></tr><tr><th>91st to 95th Percentiles
</th>
<td>$181,600</td>
<td>10.7%</td>
<td>8.9%</td>
<td>19.6%</td>
<td>21.6%
</td></tr><tr><th>96th to 99th Percentiles
</th>
<td>$286,400</td>
<td>15.1%</td>
<td>7.1%</td>
<td>22.2%</td>
<td>24.9%
</td></tr><tr><th>Top 1%
</th>
<td>$1,434,900</td>
<td>20.1%</td>
<td>2.2%</td>
<td>22.3%</td>
<td>29.4%
</td></tr></tbody></table></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(3)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Taxable_income">Taxable income</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=9" title="Edit section: Taxable income" data-section="9" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-3 collapsible-block" id="mf-section-3">
<p>Income tax is imposed as a tax rate times taxable income.  Taxable income is defined as <a href="/wiki/Gross_income" title="Gross income">gross income</a> less allowable <a href="/wiki/Tax_deductions" class="mw-redirect" title="Tax deductions">deductions</a>.  Taxable income as determined for federal tax purposes may be modified for state tax purposes.
</p>
<h3 class="in-block"><span class="mw-headline" id="Gross_income">Gross income</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=10" title="Edit section: Gross income" data-section="10" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Gross_income" title="Gross income">Gross income</a></div>
<p>The <a href="/wiki/Internal_Revenue_Code" title="Internal Revenue Code">Internal Revenue Code</a> states that "gross income means all income from whatever source derived," and gives specific examples.<sup id="cite_ref-26_USC_61_32-0" class="reference"><a href="#cite_note-26_USC_61-32">[32]</a></sup>  Gross income is not limited to cash received, but "includes income realized in any form, whether money, property, or services."<sup id="cite_ref-33" class="reference"><a href="#cite_note-33">[33]</a></sup>  Gross income includes wages and tips, fees for performing services, gain from sale of inventory or other property, interest, dividends, rents, royalties, pensions, alimony, and many other types of income.<sup id="cite_ref-26_USC_61_32-1" class="reference"><a href="#cite_note-26_USC_61-32">[32]</a></sup>  Items must be included in income when received or accrued. The amount included is the amount the taxpayer is entitled to receive. Gains on property are the gross proceeds less amounts returned, <a href="/wiki/Cost_of_goods_sold" title="Cost of goods sold">cost of goods sold</a>, or <a href="/wiki/Tax_basis" title="Tax basis">tax basis</a> of property sold.
</p><p>Certain types of income are <a href="/wiki/Tax_exemption" title="Tax exemption">exempt from income tax</a>. Among the more common types of exempt income are interest on municipal bonds, a portion of Social Security benefits, life insurance proceeds, gifts or inheritances, and the value of many employee benefits.
</p><p>Gross income is reduced by adjustments and <a href="/wiki/Tax_deductions" class="mw-redirect" title="Tax deductions">deductions</a>.  Among the more common adjustments are reductions for alimony paid and <a href="/wiki/Individual_Retirement_Account" class="mw-redirect" title="Individual Retirement Account">IRA</a> and certain other retirement plan contributions.  Adjusted gross income is used in calculations relating to various deductions, credits, phase outs, and penalties.
</p>
<h3 class="in-block"><span class="mw-headline" id="Business_deductions">Business deductions</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=11" title="Edit section: Business deductions" data-section="11" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Tax_deduction" title="Tax deduction">Tax deduction</a></div>
<p>Most business deductions are allowed regardless of the form in which the business is conducted.<sup id="cite_ref-34" class="reference"><a href="#cite_note-34">[34]</a></sup> Therefore, an individual small business owner is allowed most of the same business deductions as a publicly traded corporation.  A business is an activity conducted regularly to make a profit. Only a few business-related deductions are unique to a particular form of business-doing. The deduction of investment expenses by individuals, however, has several limitations, along with other itemized (personal) deductions.<sup id="cite_ref-35" class="reference"><a href="#cite_note-35">[35]</a></sup></p><p>The amount and timing of deductions for income tax purposes is determined under tax rules, not accounting ones. Tax rules are based on principles similar in many ways to accounting rules, but there are significant differences. Deductions for most meals and entertainment costs are limited to 50% of the costs. Costs of starting a business (sometimes called pre-operating costs) are deductible ratably over 60 months. Deductions for lobbying and political expenses are limited. Some other limitations apply.
</p><p>Expenses likely to produce future benefits must be capitalized.<sup id="cite_ref-36" class="reference"><a href="#cite_note-36">[36]</a></sup>  The capitalized costs are then deductible as depreciation (see <a href="/wiki/MACRS" title="MACRS">MACRS</a>) or amortization over the period future benefits are expected.<sup id="cite_ref-37" class="reference"><a href="#cite_note-37">[37]</a></sup>  Examples include costs of machinery and equipment and costs of making or building property. IRS tables specify lives of assets by class of asset or industry in which used.  When an asset the cost of which was capitalized is sold, exchanged, or abandoned, the proceeds (if any) are reduced by the remaining unrecovered cost to determine gain or loss. That gain or loss may be ordinary (as in the case of inventory) or capital (as in the case of stocks and bonds), or a combination (for some buildings and equipment).<sup id="cite_ref-38" class="reference"><a href="#cite_note-38">[38]</a></sup></p><p>Most personal, living, and family expenses are not deductible. Business deductions allowed for Federal income tax are almost always allowed in determining state income tax.  Only some states, however, allow itemized deductions for individuals.  Some states also limit deductions by corporations for investment related expenses.  Many states allow different amounts for depreciation deductions.  State limitations on deductions may differ significantly from Federal limitations.
</p><p>Business deductions in excess of business income result in losses that may offset other income. However, losses from passive activities may be deferred to the extent they exceed income from other passive activities.<sup id="cite_ref-39" class="reference"><a href="#cite_note-39">[39]</a></sup> Passive activities include most rental activities (except for real estate professionals) and business activities in which the taxpayer does not materially participate. In addition, losses may not, in most cases, be deducted in excess of the taxpayer's amount at risk (generally tax basis in the entity plus share of debt).
</p>
<h3 class="in-block"><span class="mw-headline" id="Personal_deductions">Personal deductions</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=12" title="Edit section: Personal deductions" data-section="12" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Prior to 2018, individuals were allowed a special deduction called a <a href="/wiki/Personal_exemption_(United_States)" class="mw-redirect" title="Personal exemption (United States)">personal exemption</a> for dependents.  This was <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:151(d)(5)%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section151(d)(5))&f=treesort&edition=prelim&num=0&jumpTo=true">not allowed after 2017</a>.  This was a fixed amount allowed each taxpayer, plus an additional fixed amount for each child or other dependents the taxpayer supports.  The amount of this deduction was $4,000 for 2015. The amount is indexed annually for inflation.  The amount of exemption was phased out at higher incomes through 2009 and after 2012 (no phase out in 2010–2012).<sup id="cite_ref-40" class="reference"><a href="#cite_note-40">[40]</a></sup></p><p><a href="/wiki/United_States_Citizen" class="mw-redirect" title="United States Citizen">Citizens</a> and individuals with U.S. <a href="/wiki/Tax_residence" title="Tax residence">tax residence</a> may deduct a flat amount as a <a href="/wiki/Standard_deduction" title="Standard deduction">standard deduction</a>.  This was $12,000 for single individuals and $24,000 for married individuals filing a joint return for 2018.  Alternatively, they may claim <a href="/wiki/Itemized_deductions" class="mw-redirect" title="Itemized deductions">itemized deductions</a> for actual amounts incurred for specific categories of nonbusiness expenses.<sup id="cite_ref-41" class="reference"><a href="#cite_note-41">[41]</a></sup> Expenses incurred to produce tax exempt income and several other items are not deductible.<sup id="cite_ref-42" class="reference"><a href="#cite_note-42">[42]</a></sup> Home owners may deduct the amount of interest and <a href="/wiki/Property_taxes#United_States" class="mw-redirect" title="Property taxes">property taxes</a> paid on their principal and second homes. Local and <a href="/wiki/State_income_taxes" class="mw-redirect" title="State income taxes">state income taxes</a> are deductible, or the individual may elect to deduct state and local <a href="/wiki/Sales_tax" title="Sales tax">sales tax</a>. Contributions to <a href="/wiki/Tax_exemption#Exempt_organizations" title="Tax exemption">charitable organizations</a> are deductible by individuals and corporations, but the deduction is limited to 50% and 10% of gross income, respectively. Medical expenses in excess of 10% of <a href="/wiki/Adjusted_gross_income" title="Adjusted gross income">adjusted gross income</a> are deductible, as are uninsured casualty losses. Other income producing expenses in excess of 2% of adjusted gross income are also deductible. Before 2010, the allowance of itemized deductions was phased out at higher incomes. The phase out expired for 2010.<sup id="cite_ref-43" class="reference"><a href="#cite_note-43">[43]</a></sup></p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(4)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Capital_gains">Capital gains</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=13" title="Edit section: Capital gains" data-section="13" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-4 collapsible-block" id="mf-section-4">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Capital_gains_tax_in_the_United_States" title="Capital gains tax in the United States">Capital gains tax in the United States</a></div>
<p>Taxable income includes <a href="/wiki/Capital_gains" class="mw-redirect" title="Capital gains">capital gains</a>. However, individuals are taxed at a lower rate on long term capital gains and qualifying dividends (see below). A capital gain is the excess of the sales price over the <a href="/wiki/Tax_basis" title="Tax basis">tax basis</a> (usually, the cost) of <a href="/wiki/Capital_assets" class="mw-redirect" title="Capital assets">capital assets</a>, generally those assets not held for sale to customers in the ordinary course of business. Capital losses (where basis is more than sales price) are deductible, but deduction for long term capital losses is limited to the total capital gains for the year, plus for individuals up to $3,000 of ordinary income ($1,500 if married filing separately). An individual may exclude $250,000 ($500,000 for a married couple filing jointly) of capital gains on the sale of the individual's <a href="/wiki/Capital_gains_tax_in_the_United_States#Primary_residence" title="Capital gains tax in the United States">primary residence</a>, subject to certain conditions and limitations.<sup id="cite_ref-44" class="reference"><a href="#cite_note-44">[44]</a></sup> Gains on depreciable property used in a business are treated as ordinary income to the extent of depreciation previously claimed.<sup id="cite_ref-45" class="reference"><a href="#cite_note-45">[45]</a></sup></p><p>In determining gain, it is necessary to determine which property is sold and the amount of basis of that property. This may require identification conventions, such as first-in-first-out, for identical properties like shares of stock. Further, tax basis must be allocated among properties purchased together unless they are sold together. Original basis, usually cost paid for the asset, is reduced by deductions for <a href="/wiki/Depreciation" title="Depreciation">depreciation</a> or loss.
</p><p>Certain capital gains are deferred; that is, they are taxed at a time later than the year of disposition. Gains on property sold for installment payments may be recognized as those payments are received. Gains on property exchanged for <a rel="nofollow" class="external text" href="https://www.irs.gov/instructions/i8824/ch01.html">like kind</a> property are not recognized, and the tax basis of the new property is based on the tax basis of the old property.
</p><p>Before 1986 and from 2004 onward, individuals were subject to a reduced rate of federal tax on capital gains (called long-term capital gains) on certain property held more than 12 months. The reduced rate of 15% applied for regular tax and the Alternative Minimum Tax through 2011. The reduced rate also applies to dividends from corporations organized in the United States or a country with which the United States has an income tax treaty.  This 15% rate was increased to 20% in 2012. An additional 3.8% tax applied for incomes above a certain level beginning 2013.<sup id="cite_ref-Lowrey_46-0" class="reference"><a href="#cite_note-Lowrey-46">[46]</a></sup></p>
<table class="wikitable" style="text-align:center"><tbody><tr><th width="75">Ordinary Income Rate
</th>
<th width="75">Long-term Capital Gain Rate*
</th>
<th width="75">Short-term Capital Gain Rate
</th>
<th width="75">Recapture of Depreciation on Long-term Gain of Real Estate
</th>
<th width="75">Long-term Gain on Collectibles
</th>
<th width="120">Long-term Gain on Certain Small Business Stock
</th></tr><tr><th>10%
</th>
<td>0%</td>
<td>10%</td>
<td>10%</td>
<td>10%</td>
<td>10%
</td></tr><tr><th>15%
</th>
<td>0%</td>
<td>15%</td>
<td>15%</td>
<td>15%</td>
<td>15%
</td></tr><tr><th>25%
</th>
<td>15%</td>
<td>25%</td>
<td>25%</td>
<td>25%</td>
<td>25%
</td></tr><tr><th>28%
</th>
<td>15 - 15 + 3.8%</td>
<td>28%</td>
<td>25%</td>
<td>28%</td>
<td>28%
</td></tr><tr><th>33%
</th>
<td>15 + 3.8%</td>
<td>33%</td>
<td>25%</td>
<td>28%</td>
<td>28%
</td></tr><tr><th>35%
</th>
<td>20 + 3.8%</td>
<td>35%</td>
<td>25%</td>
<td>28%</td>
<td>28%
</td></tr><tr><th>37%
</th>
<td>20 + 3.8%
</td>
<td>37%
</td>
<td>25%
</td>
<td>28%
</td>
<td>28%
</td></tr></tbody></table><dl><dd>* <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:121%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section121)&f=treesort&edition=prelim&num=0&jumpTo=true)">Capital gains up to $250,000 ($500,000 if filed jointly)</a> on real estate used as primary residence are exempt.</dd></dl></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(5)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Partnerships_and_LLCs">Partnerships and LLCs</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=14" title="Edit section: Partnerships and LLCs" data-section="14" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-5 collapsible-block" id="mf-section-5">
<p>Business entities treated as <a href="/wiki/Partnerships" class="mw-redirect" title="Partnerships">partnerships</a> are <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/text/26/701-">not subject to income tax</a> at the entity level. Instead, their members <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/text/26/702-">include their shares</a> of income, deductions, and credits in computing their own tax.  The character of the partner's share of income (such as capital gains) is determined at the partnership level. Many types of business entities, including <a href="/wiki/Limited_liability_companies" class="mw-redirect" title="Limited liability companies">limited liability companies</a> (LLCs), may elect to be treated as a corporation or as a partnership. Distributions from partnerships are not taxed as dividends.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(6)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Corporate_tax">Corporate tax</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=15" title="Edit section: Corporate tax" data-section="15" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-6 collapsible-block" id="mf-section-6">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Corporate_tax_in_the_United_States" title="Corporate tax in the United States">Corporate tax in the United States</a></div>
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/3/3e/US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg/220px-US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg" decoding="async" width="220" height="130" class="thumbimage" data-file-width="764" data-file-height="452"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 130px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/3/3e/US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg/220px-US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg" data-alt="" data-width="220" data-height="130" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:US_Effective_Corporate_Tax_Rate_1947-2011_v2.jpg" class="internal" title="Enlarge"></a></div>The U.S. federal <a href="/wiki/Effective_tax_rate" class="mw-redirect" title="Effective tax rate">effective</a> corporate tax rate has become much lower than the nominal rate because of various special tax provisions.</div></div></div>
<p>Corporate tax is imposed in the U.S. at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Shareholders of a corporation wholly owned by U.S. citizens and resident individuals may elect for the corporation to be taxed similarly to partnerships, as an <a href="/wiki/S_Corporation" class="mw-redirect" title="S Corporation">S Corporation</a>. Corporate income tax is based on <a href="/wiki/Taxable_income" title="Taxable income">taxable income</a>, which is defined similarly to individual taxable income.
</p><p>Shareholders (including other corporations) of corporations (other than S Corporations) are taxed on <a href="/wiki/Dividend" title="Dividend">dividend</a> distributions from the corporation. They are also subject to tax on capital gains upon sale or exchange of their shares for money or property.  However, certain exchanges, such as in reorganizations, are not taxable.
</p><p>Multiple corporations may file a <a href="/wiki/Combined_Reporting" class="mw-redirect" title="Combined Reporting">consolidated return</a> at the federal and some state levels with their common parent.
</p>
<h3 class="in-block"><span class="mw-headline" id="Corporate_tax_rates">Corporate tax rates</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=16" title="Edit section: Corporate tax rates" data-section="16" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Federal corporate income tax is imposed at <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:11)">21%</a> from 2018. Dividend exclusions and certain corporation-only deductions may significantly lower the effective rate.
</p>
<h3 class="in-block"><span class="mw-headline" id="Deductions_for_corporations">Deductions for corporations</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=17" title="Edit section: Deductions for corporations" data-section="17" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Most expenses of corporations are deductible, subject to limitations also applicable to other taxpayers. See relevant deductions for details.  In addition, regular U.S. corporations are allowed a deduction of <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:245a)">100% of dividends received</a> from 10% or more foreign subsidiaries, <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:250%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section250)&f=treesort&edition=prelim&num=0&jumpTo=true)">50% of amounts included in income</a> under <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:951a)">section 951A</a> and <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:250%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section250)&f=treesort&edition=prelim&num=0&jumpTo=true)">37.5% of foreign branch income</a>. 
</p><p>Some deductions of corporations are limited at federal or state levels.  Limitations apply to items due to <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=(title:26%20section:267%20edition:prelim)%20OR%20(granuleid:USC-prelim-title26-section267)&f=treesort&edition=prelim&num=0&jumpTo=true)">related parties</a>, including interest and royalty expenses.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(7)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Estates_and_trusts">Estates and trusts</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=18" title="Edit section: Estates and trusts" data-section="18" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-7 collapsible-block" id="mf-section-7">
<p>Estates and trusts may be <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/text/26/641-">subject to income tax</a> at the estate or trust level, or the <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/text/26/652-">beneficiaries may be subject to income tax</a> on their share of income.  Where income must be distributed, the beneficiaries are taxed similarly to partners in a partnership.  Where income may be retained, the estate or trust is taxed. It may get a deduction for later distributions of income.  Estates and trusts are allowed only those deductions related to producing income, plus $1,000. They are taxed at graduated rates that increase rapidly to the maximum rate for individuals. The tax rate for trust and estate income in excess of $11,500 was 35% for 2009. Estates and trusts are eligible for the reduced rate of tax on dividends and capital gains through 2011.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(8)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Retirement_savings_and_fringe_benefit_plans">Retirement savings and fringe benefit plans</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=19" title="Edit section: Retirement savings and fringe benefit plans" data-section="19" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-8 collapsible-block" id="mf-section-8">
<p>Employers get a deduction for amounts contributed to a qualified employee retirement plan or benefit plan.  The employee does not recognize income with respect to the plan until he or she receives a distribution from the plan. The plan itself is organized as a trust and is considered a separate entity.  For the plan to qualify for <a href="/wiki/Tax_exemption" title="Tax exemption">tax exemption</a>, and for the employer to get a deduction, the plan must meet minimum participation, vesting, funding, and operational standards.
</p><p>Examples of qualified plans include:
</p>
<ul><li>Pension plans (<a href="/wiki/Defined_benefit_pension_plan" title="Defined benefit pension plan">defined benefit pension plan</a>),</li>
<li>Profit sharing plans (<a href="/wiki/Defined_contribution_plan" title="Defined contribution plan">defined contribution plan</a>),</li>
<li><a href="/wiki/Employee_ownership" class="mw-redirect" title="Employee ownership">Employee Stock Ownership Plan</a> (ESOPs),</li>
<li>Stock purchase plans,</li>
<li>Health insurance plans,</li>
<li>Employee benefit plans,</li>
<li><a href="/wiki/Cafeteria_plan" title="Cafeteria plan">Cafeteria plans</a>.</li></ul><p>Employees or former employees are generally taxed on distributions from retirement or stock plans. Employees are not taxed on distributions from health insurance plans to pay for medical expenses. Cafeteria plans allow employees to choose among benefits (like choosing food in a cafeteria), and distributions to pay those expenses are not taxable.
</p><p>In addition, individuals may make contributions to <a href="/wiki/Individual_Retirement_Account" class="mw-redirect" title="Individual Retirement Account">Individual Retirement Accounts</a> (IRAs). Those not currently covered by other retirement plans may claim a deduction for contributions to certain types of IRAs. Income earned within an IRA is not taxed until the individual withdraws it.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(9)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Credits">Credits</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=20" title="Edit section: Credits" data-section="20" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-9 collapsible-block" id="mf-section-9">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Tax_credits" class="mw-redirect" title="Tax credits">Tax credits</a></div>
<p>The federal and state systems offer numerous <a href="/wiki/Tax_credits" class="mw-redirect" title="Tax credits">tax credits</a> for individuals and businesses.  Among the key federal credits for individuals are:
</p>
<ul><li><a href="/wiki/Child_tax_credit" title="Child tax credit">Child credit</a>:  For 2017, a credit up to $1,000 per qualifying child. For 2018, a credit up to $2,000 per qualifying child but having a SSN for child is now compulsory for claiming credit.</li>
<li><a href="/wiki/Child_and_dependent_care_credit" class="mw-redirect" title="Child and dependent care credit">Child and dependent care credit</a>:  a credit up to $6,000, phased out at incomes above $15,000.</li>
<li><a href="/wiki/Earned_Income_Tax_Credit" class="mw-redirect" title="Earned Income Tax Credit">Earned Income Tax Credit</a>:  this refundable credit is granted for a percentage of income earned by a low income individual.  The credit is calculated and capped based on the number of qualifying children, if any. This credit is indexed for inflation and phased out for incomes above a certain amount.  For 2015, the maximum credit was $6,422.<sup id="cite_ref-47" class="reference"><a href="#cite_note-47">[47]</a></sup></li>
<li>Credit for the elderly and disabled: A nonrefundable credit up to $1,125</li>
<li>Two mutually exclusive credits for college expenses.</li></ul><p>Businesses are also eligible for several credits.  These credits are available to individuals and corporations, and can be taken by partners in business partnerships. Among the federal credits included in a "general business credit" are:
</p>
<ul><li><a href="/wiki/Research_%26_Experimentation_Tax_Credit" title="Research & Experimentation Tax Credit">Credit for increasing research expenses</a>.</li>
<li>Work Incentive Credit or credit for hiring people in certain enterprise zones or on welfare.</li>
<li>A variety of industry specific credits.</li></ul><p>In addition, a federal <a href="/wiki/Foreign_tax_credit" title="Foreign tax credit">foreign tax credit</a> is allowed for foreign income taxes paid.  This credit is limited to the portion of federal income tax arising due to foreign source income.  The credit is available to all taxpayers.
</p><p>Business credits and the foreign tax credit may be offset taxes in other years.
</p><p>States and some localities offer a variety of credits that vary by jurisdiction.  States typically grant a credit to resident individuals for income taxes paid to other states, generally limited in proportion to income taxed in the other state(s).
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(10)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Alternative_minimum_tax">Alternative minimum tax</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=21" title="Edit section: Alternative minimum tax" data-section="21" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-10 collapsible-block" id="mf-section-10">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Alternative_Minimum_Tax" class="mw-redirect" title="Alternative Minimum Tax">Alternative Minimum Tax</a></div>
<p>Taxpayers must pay the higher of the regular income tax or the <a href="/wiki/Alternative_Minimum_Tax" class="mw-redirect" title="Alternative Minimum Tax">alternative minimum tax</a> (AMT). Taxpayers who have paid AMT in prior years may claim a credit against regular tax for the prior AMT. The credit is limited so that regular tax is not reduced below current year AMT.
</p><p>AMT is imposed at a nearly flat rate (20% for corporations, 26% or 28% for individuals, estates, and trusts) on taxable income as modified for AMT. Key differences between regular taxable income and AMT taxable income include:
</p>
<ul><li>The standard deduction and personal exemptions are replaced by a single deduction, which is phased out at higher income levels,</li>
<li>No deduction is allowed for individuals for state taxes,</li>
<li>Most miscellaneous itemized deductions are not allowed for individuals,</li>
<li>Depreciation deductions are computed differently, and</li>
<li>Corporations must make a complex adjustment to more closely reflect economic income.</li></ul></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(11)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Accounting_periods_and_methods">Accounting periods and methods</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=22" title="Edit section: Accounting periods and methods" data-section="22" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-11 collapsible-block" id="mf-section-11">
<p>The US tax system allows individuals and entities to choose their <a href="/wiki/Tax_year" class="mw-redirect" title="Tax year">tax year</a>.  Most individuals choose the calendar year.  There are restrictions on choice of tax year for some <a href="/wiki/Closely_held_corporation" class="mw-redirect" title="Closely held corporation">closely held</a> entities. Taxpayers may change their tax year in certain circumstances, and such change may require IRS approval.
</p><p>Taxpayers must determine their taxable income based on their <a href="/wiki/Comparison_of_Cash_Method_and_Accrual_Method_of_accounting" class="mw-redirect" title="Comparison of Cash Method and Accrual Method of accounting">method of accounting</a> for the particular activity.  Most individuals use the cash method for all activities.  Under this method, income is recognized when received and deductions taken when paid.  Taxpayers may choose or be required to use the accrual method for some activities.  Under this method, income is recognized when the right to receive it arises, and deductions are taken when the liability to pay arises and the amount can be reasonably determined.  Taxpayers recognizing <a href="/wiki/Cost_of_goods_sold" title="Cost of goods sold">cost of goods sold</a> on inventory must use the accrual method with respect to sales and costs of the inventory.
</p><p>Methods of accounting may differ for financial reporting and tax purposes.  Specific methods are specified for certain types of income or expenses.  Gain on sale of property other than inventory may be recognized at the time of sale or over the period in which <a href="/wiki/Installment_sale" title="Installment sale">installment sale</a> payments are received.  Income from long term contracts must be recognized ratably over the term of the contract, not just at completion.  Other special rules also apply.<sup id="cite_ref-48" class="reference"><a href="#cite_note-48">[48]</a></sup></p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(12)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Tax_exempt_entities">Tax exempt entities</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=23" title="Edit section: Tax exempt entities" data-section="23" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-12 collapsible-block" id="mf-section-12">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Tax_exemption" title="Tax exemption">Tax exemption</a></div>
<p>U.S. tax law exempts certain types of entities from income and some other taxes. These provisions arose during the late 19th century. Charitable organizations and cooperatives may apply to the IRS for <a href="/wiki/Tax_exemption" title="Tax exemption">tax exemption</a>. Exempt organizations are still taxed on any business income. An organization which participates in <a href="/wiki/Lobbying" title="Lobbying">lobbying</a>, <a href="/wiki/Political_campaign" title="Political campaign">political campaigning</a>, or certain other activities may lose its exempt status. Special taxes apply to prohibited transactions and activities of tax-exempt entities.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(13)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Special_taxes">Special taxes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=24" title="Edit section: Special taxes" data-section="24" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-13 collapsible-block" id="mf-section-13">
<p>There are many federal tax rules designed to prevent people from abusing the tax system. Provisions related to these taxes are often complex.  Such rules include:
</p>
<ul><li>Accumulated earnings tax on corporation accumulations in excess of business needs,</li>
<li><a href="/wiki/Personal_holding_company" class="mw-redirect" title="Personal holding company">Personal holding company</a> taxes,</li>
<li><a href="/wiki/Passive_foreign_investment_company" title="Passive foreign investment company">Passive foreign investment company</a> rules, and</li>
<li><a href="/wiki/Controlled_Foreign_Corporation" class="mw-redirect" title="Controlled Foreign Corporation">Controlled foreign corporation</a> provisions.</li></ul></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(14)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Special_industries">Special industries</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=25" title="Edit section: Special industries" data-section="25" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-14 collapsible-block" id="mf-section-14">
<p>Tax rules recognize that some types of businesses do not earn income in the traditional manner and thus require special provisions. For example, insurance companies must ultimately pay claims to some policy holders from the amounts received as premiums. These claims may happen years after the premium payment. Computing the future amount of claims requires actuarial estimates until claims are actually paid. Thus, recognizing premium income as received and claims expenses as paid would seriously distort an insurance company's income.
</p><p>Special rules apply to some or all items in the following industries:
</p>
<ul><li><a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_L.html">Insurance companies</a> (rules related to recognition of income and expense; different rules apply to life insurance and to property and casualty insurance)</li>
<li>Shipping (rules related to the revenue recognition cycle)</li>
<li><a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_I_40_I.html">Extractive industries</a> (rules related to expenses for exploration and development and for recovery of capitalized costs)</li></ul><p>In addition, mutual funds (<a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_M_40_I.html">regulated investment companies</a>) are subject to special rules allowing them to be taxed only at the owner level.  The company must report to each owner his/her share of ordinary income, capital gains, and creditable foreign taxes.  The owners then include these items in their own tax calculation.  The fund itself is not taxed, and distributions are treated as a <a href="/wiki/Return_of_capital" title="Return of capital">return of capital</a> to the owners. Similar rules apply to <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_M_40_II.html">real estate investment trusts</a> and <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_A_20_1_30_M_40_IV.html">real estate mortgage investment conduits</a>.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(15)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="International_aspects">International aspects</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=26" title="Edit section: International aspects" data-section="26" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-15 collapsible-block" id="mf-section-15">
<div class="thumb tright"><div class="thumbinner" style="width:172px;"><a href="/wiki/File:Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/c/c6/Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg/170px-Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg" decoding="async" width="170" height="277" class="thumbimage" data-file-width="652" data-file-height="1061"></noscript><span class="lazy-image-placeholder" style="width: 170px;height: 277px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/c/c6/Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg/170px-Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg" data-alt="" data-width="170" data-height="277" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Tax_Revenue_as_Share_of_GDP_for_OECD_Countries_in_2009.jpg" class="internal" title="Enlarge"></a></div><a href="/wiki/List_of_countries_by_tax_revenue_as_percentage_of_GDP" class="mw-redirect" title="List of countries by tax revenue as percentage of GDP">Total tax revenue as share of GDP</a> for OECD countries in 2009. The tax burden in the US (black) is relatively small in comparison to other industrialised countries.<sup id="cite_ref-Campell_49-0" class="reference"><a href="#cite_note-Campell-49">[49]</a></sup></div></div></div>
<div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/International_tax" class="mw-redirect" title="International tax">International tax</a>, <a href="/wiki/Foreign_tax_credit" title="Foreign tax credit">Foreign tax credit</a>, <a href="/wiki/Foreign_earned_income_exclusion" title="Foreign earned income exclusion">Foreign earned income exclusion</a>, and <a href="/wiki/Foreign_Account_Tax_Compliance_Act" title="Foreign Account Tax Compliance Act">Foreign Account Tax Compliance Act</a></div>
<p>The United States imposes tax on all citizens of the United States, including those who are residents of other countries, and U.S. corporations.
</p><p>Federal income tax is imposed on citizens, residents, and U.S. corporations based on their worldwide income. To mitigate double taxation, a credit is allowed for foreign income taxes. This <a href="/wiki/Foreign_tax_credit" title="Foreign tax credit">foreign tax credit</a> is limited to that part of current year tax caused by foreign source income. Determining such part involves determining the source of income and allocating and apportioning deductions to that income.  States tax resident individuals and corporations on their worldwide income, but few allow a credit for foreign taxes.
</p><p>In addition, Federal income tax may be imposed on non-resident non-citizens, including corporations, on U.S. source income.  Federal tax applies to interest, dividends, royalties, and certain other income of nonresident aliens and foreign corporations at a flat rate of 30%.<sup id="cite_ref-50" class="reference"><a href="#cite_note-50">[50]</a></sup> This rate is often reduced under <a href="/wiki/Tax_treaties" class="mw-redirect" title="Tax treaties">tax treaties</a>. Foreign persons are taxed on income from a U.S. business and gains on U.S. realty similarly to U.S. persons.<sup id="cite_ref-51" class="reference"><a href="#cite_note-51">[51]</a></sup> Nonresident aliens who are present in the United States for a period of 183 days in a given year are subject to U.S. capital gains tax on certain net capital gains realized during that year from sources within the United States.  The states tax non-resident individuals only on income earned within the state (wages, etc.), and tax individuals and corporations on business income apportioned to the state.
</p><p>The United States has income <a href="/wiki/Tax_treaties" class="mw-redirect" title="Tax treaties">tax treaties</a> with <a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/international/article/0,,id=96739,00.html">over 65 countries</a>. These treaties reduce the chance of double taxation by allowing each country to fully tax its citizens and residents and reducing the amount the other country can tax them. Generally the treaties provide for reduced rates of tax on investment income and limits as to which business income can be taxed. The treaties each define which taxpayers can benefit from the treaty.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(16)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Social_Insurance_taxes">Social Insurance taxes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=27" title="Edit section: Social Insurance taxes" data-section="27" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-16 collapsible-block" id="mf-section-16">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Federal_Insurance_Contributions_Act_tax" title="Federal Insurance Contributions Act tax">Federal Insurance Contributions Act tax</a></div>
<p>The United States social insurance system is funded by a tax similar to an income tax. Social Security tax of 6.2% is imposed on wages paid to employees.  The tax is imposed on both the employer and the employee.  For 2011 and 2012, the employee tax has been reduced from 6.2% to 4.2%.  The <a rel="nofollow" class="external text" href="http://www.ssa.gov/OACT/COLA/cbb.html#Series">maximum amount</a> of wages subject to the tax for 2009, 2010, and 2011 was/is $106,800.  This amount is indexed for inflation.  A companion Medicare Tax of 1.45% of wages is imposed on employers and employees, with no limitation.  A self-employment tax in like amounts (totaling 15.3%, 13.3% for 2011 and 2012) is imposed on self-employed persons.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(17)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Withholding_of_tax">Withholding of tax</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=28" title="Edit section: Withholding of tax" data-section="28" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-17 collapsible-block" id="mf-section-17">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Tax_withholding_in_the_United_States" title="Tax withholding in the United States">Tax withholding in the United States</a></div>
<p>Persons paying wages or making certain payments to foreign persons are required to withhold income tax from such payments. Income tax withholding on wages is based on <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/fw4.pdf">declarations by employees</a> and <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p15.pdf">tables provided by the IRS</a>.  Persons paying interest, dividends, royalties, and certain other amounts to foreign persons must also withhold income tax at a flat rate of 30%.  This rate may be reduced by a <a href="/wiki/Tax_treaty" title="Tax treaty">tax treaty</a>. These withholding requirements also <a href="/wiki/FATCA" class="mw-redirect" title="FATCA">apply to non-U.S. financial institutions</a>.  Additional <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc307.html">backup withholding</a> provisions apply to some payments of interest or dividends to U.S. persons.  The amount of income tax withheld is treated as a payment of tax by the person receiving the payment on which tax was withheld.
</p><p>Employers and employees must also pay <a href="/wiki/Social_Security_tax" class="mw-redirect" title="Social Security tax">Social Security tax</a>, the employee portion of which is also to be withheld from wages. Withholding of income and Social Security taxes are often referred to as <a href="/wiki/Payroll_tax" title="Payroll tax">payroll tax</a>.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(18)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Tax_returns">Tax returns</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=29" title="Edit section: Tax returns" data-section="29" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-18 collapsible-block" id="mf-section-18">
<p>Individuals (with income above a minimum level), corporations, partnerships, estates, and trusts must file annual reports, called <a href="/wiki/Tax_return_(United_States)" title="Tax return (United States)">tax returns</a>, with federal<sup id="cite_ref-52" class="reference"><a href="#cite_note-52">[52]</a></sup> and appropriate state tax authorities.  These returns vary greatly in complexity level depending on the type of filer and complexity of their affairs.  On the return, the taxpayer reports income and deductions, calculates the amount of tax owed, reports payments and credits, and calculates the balance due.
</p><p>Federal individual, estate, and trust income tax returns are due by April 15<sup id="cite_ref-IRS509-2017_53-0" class="reference"><a href="#cite_note-IRS509-2017-53">[53]</a></sup> (in 2017, April 18<sup id="cite_ref-IRS509-2017_53-1" class="reference"><a href="#cite_note-IRS509-2017-53">[53]</a></sup><sup class="reference" style="white-space:nowrap;">:<span>5</span></sup>) for most taxpayers.  Corporate and partnership Federal returns are due two and one half months following the corporation's year end.  Tax exempt entity returns are due four and one half months following the entity's year end.  All federal returns may be <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc304.html">extended</a>, with most extensions available upon merely filing a single page form.  Due dates and extension provisions for state and local income tax returns vary.
</p><p>Income tax returns generally consist of the basic form with attached forms and schedules.  Several forms are available for individuals and corporations, depending on complexity and nature of the taxpayer's affairs.  Many individuals are able to use the one page <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040ez.pdf">Form 1040-EZ</a>, which requires no attachments except wage statements from employers (<a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/fw2.pdf">Forms W-2</a>).  Individuals claiming itemized deductions must complete <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040sa.pdf">Schedule A</a>.  Similar schedules apply for interest (B), dividends (B), business income (C), capital gains (D), farm income (F), and self-employment tax (SE).  All taxpayers must file those forms for credits, depreciation, AMT, and other items that apply to them.
</p><p><a href="/wiki/IRS_e-file" title="IRS e-file">Electronic filing</a> of tax returns may be done for taxpayers by registered tax preparers.
</p><p>If a taxpayer discovers an error on a return, or determines that tax for a year should be different, the taxpayer should file an amended return.  These returns constitute claims for refund if taxes are determined to have been overpaid.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(19)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Tax_examinations">Tax examinations</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=30" title="Edit section: Tax examinations" data-section="30" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-19 collapsible-block" id="mf-section-19">
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:1920_tax_forms_IRS.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/8/81/1920_tax_forms_IRS.jpg/220px-1920_tax_forms_IRS.jpg" decoding="async" width="220" height="168" class="thumbimage" data-file-width="1536" data-file-height="1175"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 168px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/8/81/1920_tax_forms_IRS.jpg/220px-1920_tax_forms_IRS.jpg" data-alt="" data-width="220" data-height="168" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:1920_tax_forms_IRS.jpg" class="internal" title="Enlarge"></a></div>People filing tax forms in 1920.</div></div></div>
<p>The IRS, state, and local tax authorities may examine a tax return and propose changes.  Changes to tax returns may be made with minimal advance involvement by taxpayers, such as changes to wage or dividend income to correct errors.  Other examination of returns may require extensive taxpayer involvement, such as an audit by the IRS.  These audits often require that taxpayers provide the IRS or other tax authority access to records of income and deductions.  Audits of businesses are usually conducted by IRS personnel at the business location.
</p><p>Changes to returns are subject to appeal by the taxpayer, including going to court.  IRS changes are often first issued as <a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/article/0,,id=180776,00.html">proposed adjustments</a><a rel="nofollow" class="external text" href="https://web.archive.org/web/20080511051026/http://www.irs.gov/businesses/article/0,,id=180776,00.html">Archived</a> 2008-05-11 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>.  The taxpayer may agree to the proposal, or may advise the IRS why it disagrees.  Proposed adjustments are often resolved by the IRS and taxpayer agreeing to what the adjustment should be.  For those adjustments to which agreement is not reached, the IRS issues a <a rel="nofollow" class="external text" href="https://www.irs.gov/individuals/article/0,,id=160744,00.html">30-day letter</a> advising of the adjustment.  The taxpayer may <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f12203.pdf">appeal</a> this preliminary assessment within 30 days within the IRS.
</p><p>The Appeals Division reviews the IRS field team determination and taxpayer arguments, and often proposes a solution that the IRS team and the taxpayer find acceptable.  Where agreement is still not reached, the IRS issues an assessment as a notice of deficiency or <a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/small/article/0,,id=171838,00.html">90-day letter</a>.  The taxpayer then has three choices:  file suit in <a href="/wiki/United_States_Tax_Court" title="United States Tax Court">United States Tax Court</a> without paying the tax, pay the tax and sue for refund in regular court, or pay the tax and be done.  Recourse to court can be costly and time consuming, but is often successful.
</p><p>IRS computers routinely make adjustments to correct mechanical errors in returns.  In addition, the IRS conducts an extensive document matching computer program that compares taxpayer amounts of wages, interest, dividends, and other items to amounts reported by taxpayers.  These programs automatically issue 30-day letters advising of proposed changes.  Only a very small percentage of tax returns are actually examined.  These are selected by a combination of computer analysis of return information and random sampling.  The IRS has long maintained a <a rel="nofollow" class="external text" href="https://www.irs.gov/irm/part4/irm_04-001-003.html">program to identify patterns</a> on returns most likely to require adjustment.
</p><p>Procedures for examination by state and local authorities vary by jurisdiction.
</p>
<h3 class="in-block"><span class="mw-headline" id="Tax_collection">Tax collection</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=31" title="Edit section: Tax collection" data-section="31" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Taxpayers are required to pay all taxes owed based on the self-assessed tax returns, as adjusted.  The IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc201.html">collection process</a> allows taxpayers to in certain circumstances, and provides time payment plans that include interest and a "penalty" that is merely added interest.  Where taxpayers do not pay tax owed, the IRS has strong means to enforce collection.  These include the ability to levy bank accounts and seize property.  Generally, significant advance notice is given before levy or seizure.  However, in certain rarely used <a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26_10_F_20_70_30_A_40_II.html">jeopardy assessments</a> the IRS may immediately seize money and property.  The IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/irs/article/0,,id=101001,00.html">Collection Divisions</a> are responsible for most collection activities.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(20)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Statute_of_limitations">Statute of limitations</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=32" title="Edit section: Statute of limitations" data-section="32" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-20 collapsible-block" id="mf-section-20">
<p>The IRS is precluded from assessing additional tax after a certain period of time. In the case of federal income tax, this period is generally three years from the later of the due date of the original tax return or the date the original return was filed. The IRS has an additional three more years to make changes if the taxpayer has substantially understated gross income. The period under which the IRS may make changes is unlimited in the case of fraud, or in the case of failure to file a return.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(21)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Penalties">Penalties</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=33" title="Edit section: Penalties" data-section="33" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-21 collapsible-block" id="mf-section-21">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/IRS_penalties" title="IRS penalties">IRS penalties</a></div>
<p>Taxpayers who fail to file returns, file late, or file returns that are wrong, may be subject to penalties.  These penalties vary based on the type of failure.  Some penalties are computed like interest, some are fixed amounts, and some are based on other measures.  Penalties for filing or paying late are generally based on the amount of tax that should have been paid and the degree of lateness.  Penalties for failures related to certain forms are fixed amounts, and vary by form from very small to huge.
</p><p>Intentional failures, including tax fraud, may result in criminal penalties.  These penalties may include jail time or forfeiture of property.  Criminal penalties are assessed in coordination with the <a href="/wiki/United_States_Department_of_Justice" title="United States Department of Justice">United States Department of Justice</a>.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(22)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="History">History</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=34" title="Edit section: History" data-section="34" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-22 collapsible-block" id="mf-section-22">
<h3 class="in-block"><span class="mw-headline" id="Constitutional">Constitutional</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=35" title="Edit section: Constitutional" data-section="35" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/United_States_income_tax_(legal_history)" class="mw-redirect" title="United States income tax (legal history)">United States income tax (legal history)</a></div> <div role="note" class="hatnote navigation-not-searchable">See also: <a href="/wiki/Taxation_history_of_the_United_States" class="mw-redirect" title="Taxation history of the United States">Taxation history of the United States</a> and <a href="/w/index.php?title=Marginal_tax_rates_in_the_United_States_(history)&action=edit&redlink=1" class="new" title="Marginal tax rates in the United States (history) (page does not exist)">Marginal tax rates in the United States (history)</a></div>
<div class="thumb tright"><div class="thumbinner" style="width:172px;"><a href="/wiki/File:Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/4/44/Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg/170px-Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg" decoding="async" width="170" height="223" class="thumbimage" data-file-width="2850" data-file-height="3742"></noscript><span class="lazy-image-placeholder" style="width: 170px;height: 223px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/4/44/Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg/170px-Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg" data-alt="" data-width="170" data-height="223" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Abraham_Lincoln_head_on_shoulders_photo_portrait.jpg" class="internal" title="Enlarge"></a></div><a href="/wiki/President_of_the_United_States" title="President of the United States">President</a> <a href="/wiki/Abraham_Lincoln" title="Abraham Lincoln">Abraham Lincoln</a> and the <a href="/wiki/United_States_Congress" title="United States Congress">United States Congress</a> introduced in 1861 the first personal income tax in the United States.</div></div></div>
<p>Article I, Section 8, Clause 1 of the United States Constitution (the "<a href="/wiki/Taxing_and_Spending_Clause" title="Taxing and Spending Clause">Taxing and Spending Clause</a>"), specifies <a href="/wiki/United_States_Congress" title="United States Congress">Congress</a>'s power to impose "Taxes, Duties, Imposts and Excises", but Article I, Section 8 requires that, "Duties, Imposts and Excises shall be uniform throughout the United States."<sup id="cite_ref-54" class="reference"><a href="#cite_note-54">[54]</a></sup></p><p>The Constitution specifically stated Congress' method of imposing direct taxes, by requiring Congress to distribute direct taxes in proportion to each state's population "determined by adding to the whole Number of free Persons, including those bound to Service for a Term of Years, and excluding Indians not taxed, three fifths of all other Persons". It has been argued that <a href="/wiki/Tax_per_head" class="mw-redirect" title="Tax per head">head taxes</a> and <a href="/wiki/Property_tax" title="Property tax">property taxes</a> (slaves could be taxed as either or both) were likely to be abused, and that they bore no relation to the activities in which the federal government had a legitimate interest. The fourth clause of section 9 therefore specifies that, "No Capitation, or other direct, Tax shall be laid, unless in Proportion to the Census or enumeration herein before directed to be taken."
</p><p>Taxation was also the subject of <a href="/wiki/Federalist_No._33" title="Federalist No. 33">Federalist No. 33</a> penned secretly by the Federalist <a href="/wiki/Alexander_Hamilton" title="Alexander Hamilton">Alexander Hamilton</a> under the <a href="/wiki/Pseudonym" title="Pseudonym">pseudonym</a> <a href="/wiki/Federalist_Papers#Origins" class="mw-redirect" title="Federalist Papers">Publius</a>. In it, he asserts that the wording of the "Necessary and Proper" clause should serve as guidelines for the legislation of laws regarding taxation. The legislative branch is to be the judge, but any abuse of those powers of judging can be overturned by the people, whether as states or as a larger group.
</p><p>The courts have generally held that direct taxes are limited to taxes on people (variously called "capitation", "poll tax" or "head tax") and property.<sup id="cite_ref-55" class="reference"><a href="#cite_note-55">[55]</a></sup> All other taxes are commonly referred to as "indirect taxes," because they tax an event, rather than a person or property <i>per se.</i><sup id="cite_ref-56" class="reference"><a href="#cite_note-56">[56]</a></sup> What seemed to be a straightforward limitation on the power of the legislature based on the subject of the tax proved inexact and unclear when applied to an income tax, which can be arguably viewed either as a direct or an indirect tax.
</p>
<h3 class="in-block"><span class="mw-headline" id="Early_federal_income_taxes">Early federal income taxes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=36" title="Edit section: Early federal income taxes" data-section="36" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>The first income tax suggested in the United States was during the <a href="/wiki/War_of_1812" title="War of 1812">War of 1812</a>. The idea for the tax was based on the British Tax Act of 1798. The British tax law applied progressive rates to income. The British tax rates ranged from 0.833% on income starting at £60 to 10% on income above £200. The tax proposal was developed in 1814. Because the treaty of Ghent was signed in 1815, ending hostilities and the need for additional revenue, the tax was never imposed in the United States.<sup id="cite_ref-57" class="reference"><a href="#cite_note-57">[57]</a></sup></p><p>In order to help pay for its war effort in the <a href="/wiki/American_Civil_War" title="American Civil War">American Civil War</a>, Congress imposed the first federal income tax in U.S. history through passage of the <a href="/wiki/Revenue_Act_of_1861" title="Revenue Act of 1861">Revenue Act of 1861</a>.<sup id="cite_ref-58" class="reference"><a href="#cite_note-58">[58]</a></sup> The act created a flat tax of three percent on incomes above $800 ($22,800 in current dollar terms). This taxation of income reflected the increasing amount of wealth held in stocks and bonds rather than property, which the federal government had taxed in the past.<sup id="cite_ref-59" class="reference"><a href="#cite_note-59">[59]</a></sup> The <a href="/wiki/Revenue_Act_of_1862" title="Revenue Act of 1862">Revenue Act of 1862</a> established the first national <a href="/wiki/Estate_tax_in_the_United_States" title="Estate tax in the United States">inheritance tax</a> and added a <a href="/wiki/Progressive_tax" title="Progressive tax">progressive taxation</a> structure to the federal income tax, implementing a tax of five percent on incomes above $10,000.<sup id="cite_ref-60" class="reference"><a href="#cite_note-60">[60]</a></sup> Congress later further raised taxes, and by the end of the war, the income tax constituted about one-fifth of the revenue of the federal government. To collect these taxes, Congress created the Office of the <a href="/wiki/Commissioner_of_Internal_Revenue" title="Commissioner of Internal Revenue">Commissioner of Internal Revenue</a> within the Treasury Department.<sup id="cite_ref-pollack1_61-0" class="reference"><a href="#cite_note-pollack1-61">[61]</a></sup> The federal income tax would remain in effect until its repeal in 1872.<sup id="cite_ref-62" class="reference"><a href="#cite_note-62">[62]</a></sup></p><p>In 1894, <a href="/wiki/History_of_the_United_States_Democratic_Party" title="History of the United States Democratic Party">Democrats</a> in Congress passed the <a href="/wiki/Wilson-Gorman_tariff" class="mw-redirect" title="Wilson-Gorman tariff">Wilson-Gorman tariff</a>, which imposed the first peacetime income tax. The rate was 2% on income over $4000, which meant fewer than 10% of households would pay any. The purpose of the income tax was to make up for revenue that would be lost by tariff reductions.<sup id="cite_ref-63" class="reference"><a href="#cite_note-63">[63]</a></sup> In 1895 the <a href="/wiki/United_States_Supreme_Court" class="mw-redirect" title="United States Supreme Court">United States Supreme Court</a>, in its ruling in <i><a href="/wiki/Pollock_v._Farmers%27_Loan_%26_Trust_Co." title="Pollock v. Farmers' Loan & Trust Co.">Pollock v. Farmers' Loan & Trust Co.</a>,</i> held a tax based on receipts from the use of property to be unconstitutional. The Court held that taxes on <a href="/wiki/Economic_rent" title="Economic rent">rents</a> from real estate, on <a href="/wiki/Interest" title="Interest">interest</a> income from personal property and other income from personal property (which includes <a href="/wiki/Dividend" title="Dividend">dividend</a> income) were treated as direct taxes on property, and therefore had to be apportioned (divided among the states based on their populations). Since apportionment of income taxes is impractical, this had the effect of prohibiting a federal tax on income from property. However, the Court affirmed that the Constitution did not deny Congress the power to impose a tax on real and personal property, and it affirmed that such would be a direct tax.<sup id="cite_ref-64" class="reference"><a href="#cite_note-64">[64]</a></sup> Due to the political difficulties of taxing individual wages without taxing income from property, a federal income tax was impractical from the time of the <i>Pollock</i> decision until the time of ratification of the Sixteenth Amendment (below).
</p>
<h3 class="in-block"><span class="mw-headline" id="Ratification_of_the_Sixteenth_Amendment">Ratification of the Sixteenth Amendment</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=37" title="Edit section: Ratification of the Sixteenth Amendment" data-section="37" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/Sixteenth_Amendment_to_the_United_States_Constitution" title="Sixteenth Amendment to the United States Constitution">Sixteenth Amendment to the United States Constitution</a></div>
<div class="thumb tright"><div class="thumbinner" style="width:172px;"><a href="/wiki/File:16th_Amendment_Pg1of1_AC.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/eb/16th_Amendment_Pg1of1_AC.jpg/170px-16th_Amendment_Pg1of1_AC.jpg" decoding="async" width="170" height="257" class="thumbimage" data-file-width="1474" data-file-height="2230"></noscript><span class="lazy-image-placeholder" style="width: 170px;height: 257px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/e/eb/16th_Amendment_Pg1of1_AC.jpg/170px-16th_Amendment_Pg1of1_AC.jpg" data-alt="" data-width="170" data-height="257" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:16th_Amendment_Pg1of1_AC.jpg" class="internal" title="Enlarge"></a></div>Amendment XVI in the <a href="/wiki/National_Archives_and_Records_Administration" title="National Archives and Records Administration">National Archives</a></div></div></div>
<p>In response, Congress proposed the <a href="/wiki/Sixteenth_Amendment_to_the_United_States_Constitution" title="Sixteenth Amendment to the United States Constitution">Sixteenth Amendment</a> (ratified by the requisite number of states in 1913),<sup id="cite_ref-65" class="reference"><a href="#cite_note-65">[65]</a></sup> which states:
</p>
<blockquote>
<p>The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration.
</p>
</blockquote>
<p>The <a href="/wiki/Supreme_Court_of_the_United_States" title="Supreme Court of the United States">Supreme Court</a> in <i><a href="/wiki/Brushaber_v._Union_Pacific_Railroad" class="mw-redirect" title="Brushaber v. Union Pacific Railroad">Brushaber v. Union Pacific Railroad</a>,</i> <a href="/wiki/List_of_United_States_Supreme_Court_cases,_volume_240" title="List of United States Supreme Court cases, volume 240">240</a> <a href="/wiki/United_States_Reports" title="United States Reports">U.S.</a> <a rel="nofollow" class="external text" href="https://supreme.justia.com/cases/federal/us/240/1/">1</a> (1916), indicated that the amendment did not expand the federal government's existing power to tax income (meaning profit or gain from any source) but rather removed the possibility of classifying an income tax as a direct tax on the basis of the source of the income. The Amendment removed the need for the income tax to be apportioned among the states on the basis of population. Income taxes are required, however, to abide by the law of geographical uniformity.
</p><p>Some <a href="/wiki/Tax_protester_(United_States)" class="mw-redirect" title="Tax protester (United States)">tax protesters</a> and others opposed to income taxes cite what they contend is evidence that the Sixteenth Amendment was never properly <a href="/wiki/Ratification" title="Ratification">ratified</a>, based in large part on materials sold by William J. Benson. In December 2007, Benson's "<a href="/wiki/The_Law_that_Never_Was" title="The Law that Never Was">Defense Reliance Package</a>" containing his non-ratification argument which he offered for sale on the Internet, was ruled by a federal court to be a "fraud perpetrated by Benson" that had "caused needless confusion and a waste of the customers' and the IRS' time and resources".<sup id="cite_ref-66" class="reference"><a href="#cite_note-66">[66]</a></sup> The court stated: "Benson has failed to point to evidence that would create a genuinely disputed fact regarding whether the Sixteenth Amendment was properly ratified or whether United States Citizens are legally obligated to pay federal taxes."<sup id="cite_ref-67" class="reference"><a href="#cite_note-67">[67]</a></sup> <i>See also <a href="/wiki/Tax_protester_Sixteenth_Amendment_arguments" title="Tax protester Sixteenth Amendment arguments">Tax protester Sixteenth Amendment arguments</a>.</i>
</p>
<h3 class="in-block"><span class="mw-headline" id="Modern_interpretation_of_the_power_to_tax_incomes">Modern interpretation of the power to tax incomes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=38" title="Edit section: Modern interpretation of the power to tax incomes" data-section="38" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>The modern interpretation of the Sixteenth Amendment taxation power can be found in <i><a href="/wiki/Commissioner_v._Glenshaw_Glass_Co." title="Commissioner v. Glenshaw Glass Co.">Commissioner v. Glenshaw Glass Co.</a></i> <a href="/wiki/List_of_United_States_Supreme_Court_cases,_volume_348" title="List of United States Supreme Court cases, volume 348">348</a> <a href="/wiki/United_States_Reports" title="United States Reports">U.S.</a> <a rel="nofollow" class="external text" href="https://supreme.justia.com/cases/federal/us/348/426/">426</a> (1955). In that case, a taxpayer had received an award of punitive damages from a competitor for antitrust violations and sought to avoid paying taxes on that award. The Court observed that Congress, in imposing the income tax, had defined <a href="/wiki/Gross_income" title="Gross income">gross income</a>, under the <a href="/wiki/Internal_Revenue_Code" title="Internal Revenue Code">Internal Revenue Code of 1939</a>, to include:
</p>
<blockquote>
<p>gains, profits, and income derived from salaries, wages or compensation for personal service ... of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, or sales, or dealings in property, whether real or personal, growing out of the ownership or use of or interest in such property; also from interest, rent, dividends, securities, or the transaction of any business carried on for gain or profit, or gains or profits and income derived from any source whatever.<sup id="cite_ref-348US_68-0" class="reference"><a href="#cite_note-348US-68">[68]</a></sup><sup class="reference" style="white-space:nowrap;">:<span>p. 429</span></sup></p>
</blockquote>
<p>(Note: The <i>Glenshaw Glass</i> case was an interpretation of the definition of "gross income" in section 22 of the Internal Revenue Code of 1939. The successor to section 22 of the 1939 Code is section 61 of the current Internal Revenue Code of 1986, as amended.)
</p><p>The Court held that "this language was used by Congress to exert in this field the full measure of its taxing power", id., and that "the Court has given a liberal construction to this broad phraseology in recognition of the intention of Congress to tax all gains except those specifically exempted."<sup id="cite_ref-348US_68-1" class="reference"><a href="#cite_note-348US-68">[68]</a></sup><sup class="reference" style="white-space:nowrap;">:<span>p. 430</span></sup></p><p>The Court then enunciated what is now understood by Congress and the Courts to be the definition of taxable income, "instances of undeniable accessions to wealth, clearly realized, and over which the taxpayers have complete dominion." Id. at 431. The defendant in that case suggested that a 1954 rewording of the tax code had limited the income that could be taxed, a position which the Court rejected, stating:
</p>
<blockquote>
<p>The definition of gross income has been simplified, but no effect upon its present broad scope was intended. Certainly punitive damages cannot reasonably be classified as gifts, nor do they come under any other exemption provision in the Code. We would do violence to the plain meaning of the statute and restrict a clear legislative attempt to bring the taxing power to bear upon all receipts constitutionally taxable were we to say that the payments in question here are not gross income.<sup id="cite_ref-348US_68-2" class="reference"><a href="#cite_note-348US-68">[68]</a></sup><sup class="reference" style="white-space:nowrap;">:<span>pp. 432–33</span></sup></p>
</blockquote>
<p>Tax statutes passed after the ratification of the Sixteenth Amendment in 1913 are sometimes referred to as the "modern" tax statutes. Hundreds of Congressional acts have been passed since 1913, as well as several codifications (i.e., topical reorganizations) of the statutes (see <a href="/wiki/Codification_(law)" title="Codification (law)">Codification</a>).
</p><p>In <i>Central Illinois Public Service Co. v. United States</i>, <a href="/wiki/List_of_United_States_Supreme_Court_cases,_volume_435" title="List of United States Supreme Court cases, volume 435">435</a> <a href="/wiki/United_States_Reports" title="United States Reports">U.S.</a> <a rel="nofollow" class="external text" href="https://supreme.justia.com/cases/federal/us/435/21/">21</a> (1978), the U.S. Supreme Court confirmed that wages and income are not identical as far as taxes on income are concerned, because income not only <i>includes</i> wages, but any <i>other</i> gains as well. The Court in that case noted that in enacting taxation legislation, Congress "chose not to return to the inclusive language of the Tariff Act of 1913, but, specifically, 'in the interest of simplicity and ease of administration,' confined the <i>obligation to withhold</i> [income taxes] to 'salaries, wages, and other forms of compensation for personal services'" and that "committee reports ... stated consistently that 'wages' meant remuneration 'if paid for services performed by an employee for his employer'".<sup id="cite_ref-348US_68-3" class="reference"><a href="#cite_note-348US-68">[68]</a></sup><sup class="reference" style="white-space:nowrap;">:<span>p. 27</span></sup></p><p>Other courts have noted this distinction in upholding the taxation not only of wages, but also of personal gain derived from <i>other</i> sources, recognizing some limitation to the reach of income taxation. For example, in <i>Conner v. United States</i>, 303 F. Supp. 1187 (S.D. Tex. 1969), <i>aff'd in part and rev'd in part</i>, 439 F.2d 974 (5th Cir. 1971), a couple had lost their home to a fire, and had received compensation for their loss from the insurance company, partly in the form of hotel costs reimbursed. The court acknowledged the authority of the IRS to assess taxes on all forms of payment, but did not permit taxation on the compensation provided by the insurance company, because unlike a wage or a sale of goods at a profit, this was not a gain. As the Court noted, "Congress has taxed income, not compensation".
</p><p>By contrast, other courts have interpreted the Constitution as providing even broader taxation powers for Congress. In <i><a href="/wiki/Murphy_v._IRS" title="Murphy v. IRS">Murphy v. IRS</a></i>, the United States Court of Appeals for the District of Columbia Circuit upheld the federal income tax imposed on a monetary settlement recovery that the same court had previously indicated was not income, stating: "[a]lthough the 'Congress cannot make a thing income which is not so in fact,'... it can <i>label</i> a thing income and tax it, so long as it acts within its constitutional authority, which includes not only the Sixteenth Amendment but also Article I, Sections 8 and 9."<sup id="cite_ref-69" class="reference"><a href="#cite_note-69">[69]</a></sup></p><p>Similarly, in <i>Penn Mutual Indemnity Co. v. Commissioner</i>, the United States Court of Appeals for the Third Circuit indicated that Congress could properly impose the federal income tax on a receipt of money, regardless of what that receipt of money is called:
</p>
<blockquote><p>It could well be argued that the tax involved here [an income tax] is an "excise tax" based upon the receipt of money by the taxpayer. It certainly is not a tax on property and it certainly is not a capitation tax; therefore, it need not be apportioned. ... Congress has the power to impose taxes generally, and if the particular imposition does not run afoul of any constitutional restrictions then the tax is lawful, call it what you will.<sup id="cite_ref-70" class="reference"><a href="#cite_note-70">[70]</a></sup></p></blockquote>
<h3 class="in-block"><span class="mw-headline" id="Income_tax_rates_in_history">Income tax rates in history</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=39" title="Edit section: Income tax rates in history" data-section="39" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<h4 class="in-block"><span class="mw-headline" id="History_of_top_rates">History of top rates</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=40" title="Edit section: History of top rates" data-section="40" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h4>
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/8/8c/Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg/220px-Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg" decoding="async" width="220" height="97" class="thumbimage" data-file-width="4458" data-file-height="1973"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 97px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/8/8c/Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg/220px-Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg" data-alt="" data-width="220" data-height="97" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Historical_Marginal_Tax_Rate_for_Highest_and_Lowest_Income_Earners.jpg" class="internal" title="Enlarge"></a></div>Historical federal <a href="/wiki/Marginal_tax_rate" class="mw-redirect" title="Marginal tax rate">marginal tax rates</a> for income for the lowest and highest income earners in the US.<sup id="cite_ref-TaxFoundation_71-0" class="reference"><a href="#cite_note-TaxFoundation-71">[71]</a></sup></div></div></div>
<div class="floatright"><a href="/wiki/File:Federal,_State,_and_Local_income_tax_GDP.pdf" class="image" title="Federal, State, and Local income tax as a percent GDP"><noscript><img alt="Federal, State, and Local income tax as a percent GDP" src="//upload.wikimedia.org/wikipedia/commons/thumb/7/72/Federal%2C_State%2C_and_Local_income_tax_GDP.pdf/page1-800px-Federal%2C_State%2C_and_Local_income_tax_GDP.pdf.jpg" decoding="async" width="800" height="204" data-file-width="2679.1666666667" data-file-height="683.33333333333"></noscript><span class="lazy-image-placeholder" style="width: 800px;height: 204px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/7/72/Federal%2C_State%2C_and_Local_income_tax_GDP.pdf/page1-800px-Federal%2C_State%2C_and_Local_income_tax_GDP.pdf.jpg" data-alt="Federal, State, and Local income tax as a percent GDP" data-width="800" data-height="204"> </span></a></div>
<div class="floatright"><a href="/wiki/File:Federal_taxes_by_type.pdf" class="image" title="Federal income, payroll, and tariff tax history"><noscript><img alt="Federal income, payroll, and tariff tax history" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/Federal_taxes_by_type.pdf/page1-800px-Federal_taxes_by_type.pdf.jpg" decoding="async" width="800" height="200" data-file-width="2760" data-file-height="689"></noscript><span class="lazy-image-placeholder" style="width: 800px;height: 200px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/e/e0/Federal_taxes_by_type.pdf/page1-800px-Federal_taxes_by_type.pdf.jpg" data-alt="Federal income, payroll, and tariff tax history" data-width="800" data-height="200"> </span></a></div>
<div class="floatright"><a href="/wiki/File:Taxes_revenue_by_source_chart_history.png" class="image" title="Taxes revenue by source chart history"><noscript><img alt="Taxes revenue by source chart history" src="//upload.wikimedia.org/wikipedia/commons/thumb/9/96/Taxes_revenue_by_source_chart_history.png/400px-Taxes_revenue_by_source_chart_history.png" decoding="async" width="400" height="184" data-file-width="5169" data-file-height="2378"></noscript><span class="lazy-image-placeholder" style="width: 400px;height: 184px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/9/96/Taxes_revenue_by_source_chart_history.png/400px-Taxes_revenue_by_source_chart_history.png" data-alt="Taxes revenue by source chart history" data-width="400" data-height="184"> </span></a></div>
<div class="thumb tright"><div class="thumbinner" style="width:502px;"><a href="/wiki/File:Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/3/3a/Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf/page1-500px-Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf.jpg" decoding="async" width="500" height="179" class="thumbimage" data-file-width="2775" data-file-height="995"></noscript><span class="lazy-image-placeholder" style="width: 500px;height: 179px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/3/3a/Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf/page1-500px-Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf.jpg" data-alt="" data-width="500" data-height="179" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Federal_Capital_Gains_Tax_Collections_1954-2009_history_chart.pdf" class="internal" title="Enlarge"></a></div>US Capital Gains Taxes history</div></div></div>
<ul><li>In 1913, the top tax rate was 7% on incomes above $500,000 (equivalent to $12.9 million<sup id="cite_ref-inflation-US_72-0" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars) and a total of $28.3 million was collected.<sup id="cite_ref-73" class="reference"><a href="#cite_note-73">[73]</a></sup></li>
<li>During <a href="/wiki/World_War_I" title="World War I">World War I</a>, the top rate rose to 77% and the income threshold to be in this top bracket increased to $1,000,000 (equivalent to $20 million<sup id="cite_ref-inflation-US_72-1" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars).</li>
<li>Under Treasury Secretary <a href="/wiki/Andrew_Mellon" title="Andrew Mellon">Andrew Mellon</a>, top tax rates were reduced in 1921, 1924, 1926, and 1928. Mellon argued that lower rates would spur economic growth.<sup id="cite_ref-74" class="reference"><a href="#cite_note-74">[74]</a></sup> By 1928, the top rate was scaled down to 24% along with the income threshold for paying this rate lowered to $100,000 (equivalent to $1.49 million<sup id="cite_ref-inflation-US_72-2" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars).</li>
<li>During the <a href="/wiki/Great_Depression" title="Great Depression">Great Depression</a> and <a href="/wiki/World_War_II" title="World War II">World War II</a>, the top income tax rate rose from pre-war levels. In 1939, the top rate was 75% applied to incomes above $5,000,000 (equivalent to $91.9 million<sup id="cite_ref-inflation-US_72-3" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars). During 1944 and 1945, the top rate was its all-time high at 94% applied to income above $200,000 (equivalent to $2.9 million<sup id="cite_ref-inflation-US_72-4" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars).</li>
<li>The highest marginal tax rate for individuals for U.S. federal income tax purposes for tax years 1952 and 1953 was 92%.<sup id="cite_ref-75" class="reference"><a href="#cite_note-75">[75]</a></sup></li>
<li>From 1964–2013, the threshold for paying top income tax rate has generally been between $200,000 and $400,000 (unadjusted for inflation). The one exception is the period from 1982 to 1992 when the topmost income tax brackets were removed. From 1981 until 1986 the top marginal rate was lowered to 50% on $86,000 and up (equivalent to $242 thousand<sup id="cite_ref-inflation-US_72-5" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars). From 1988 to 1990, the threshold for paying the top rate was even lower, with incomes above $29,750 (equivalent to $64.3 thousand<sup id="cite_ref-inflation-US_72-6" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup> in 2019 dollars) paying the top rate of 28% in those years.<sup id="cite_ref-76" class="reference"><a href="#cite_note-76">[76]</a></sup><sup id="cite_ref-77" class="reference"><a href="#cite_note-77">[77]</a></sup></li>
<li>Top tax rates were increased in 1992 and 1994, culminating in a 39.6% top individual rate applicable to all classes of income.</li>
<li>Top individual tax rates were lowered in 2004 to 35% and tax rates on dividends and capital gains lowered to 15%, with the Bush administration claiming lower rates would spur economic growth.</li>
<li>Based on the summary of federal tax income data in 2009, with a tax rate of 35%, the highest earning 1% of people paid 36.7% of the United States' income tax revenue.<sup id="cite_ref-78" class="reference"><a href="#cite_note-78">[78]</a></sup></li>
<li>In 2012, President Obama announced plans to raise the two top tax rates from 35% to 39.6% and from 33% to 36%.<sup id="cite_ref-79" class="reference"><a href="#cite_note-79">[79]</a></sup></li></ul><table class="wikitable collapsible" align="center" style="text-align:center; margin:0 0 1em 1em;"><tbody><tr><th colspan="8">History of income tax rates adjusted for inflation (1913–2013)<sup id="cite_ref-80" class="reference"><a href="#cite_note-80">[80]</a></sup><sup id="cite_ref-81" class="reference"><a href="#cite_note-81">[81]</a></sup></th></tr><tr><th>
</th>
<th>Number of
</th>
<th>First Bracket
</th>
<th colspan="3">Top Bracket
</th>
<th>
</th></tr><tr><th>Year
</th>
<th>Brackets
</th>
<th>Rate
</th>
<th>Rate
</th>
<th>Income
</th>
<th nowrap>Adj. 2019<sup id="cite_ref-inflation-US_72-7" class="reference"><a href="#cite_note-inflation-US-72">[72]</a></sup><sup id="cite_ref-82" class="reference"><a href="#cite_note-82">[82]</a></sup></th>
<th>Comment
</th></tr><tr><th>1913
</th>
<td>7</td>
<td>1%</td>
<td>7%</td>
<td>$500,000</td>
<td>$12.9 million</td>
<td>First permanent income tax
</td></tr><tr><th>1916
</th>
<td>14</td>
<td>2%</td>
<td>15%</td>
<td>$2,000,000</td>
<td>$47 million</td>
<td>—
</td></tr><tr><th>1917
</th>
<td>21</td>
<td>2%</td>
<td>67%</td>
<td>$2,000,000</td>
<td>$39.9 million</td>
<td>World War I financing
</td></tr><tr><th>1918
</th>
<td>56</td>
<td>6%</td>
<td>77%</td>
<td>$1,000,000</td>
<td>$17 million</td>
<td>—
</td></tr><tr><th>1919
</th>
<td>56</td>
<td>4%</td>
<td>73%</td>
<td>$1,000,000</td>
<td>$14.7 million</td>
<td>—
</td></tr><tr><th>1922
</th>
<td>50</td>
<td>4%</td>
<td>58%</td>
<td>$200,000</td>
<td>$3.05 million</td>
<td>—
</td></tr><tr><th>1923
</th>
<td>50</td>
<td>3%</td>
<td>43.5%</td>
<td>$200,000</td>
<td>$3 million</td>
<td>—
</td></tr><tr><th>1924
</th>
<td>43</td>
<td>1.5%</td>
<td>46%</td>
<td>$500,000</td>
<td>$7.46 million</td>
<td>—
</td></tr><tr><th>1925
</th>
<td>23</td>
<td>1.125%</td>
<td>25%</td>
<td>$100,000</td>
<td>$1.46 million</td>
<td>Post war reductions
</td></tr><tr><th>1929
</th>
<td>23</td>
<td>0.375%</td>
<td>24%</td>
<td>$100,000</td>
<td>$1.49 million</td>
<td>—
</td></tr><tr><th>1930
</th>
<td>23</td>
<td>1.125%</td>
<td>25%</td>
<td>$100,000</td>
<td>$1.53 million</td>
<td>—
</td></tr><tr><th>1932
</th>
<td>55</td>
<td>4%</td>
<td>63%</td>
<td>$1,000,000</td>
<td>$18.7 million</td>
<td>Depression era
</td></tr><tr><th>1936
</th>
<td>31</td>
<td>4%</td>
<td>79%</td>
<td>$5,000,000</td>
<td>$92.1 million</td>
<td>—
</td></tr><tr><th>1940
</th>
<td>31</td>
<td>4.4%</td>
<td>81.1%</td>
<td>$5,000,000</td>
<td>$91.2 million</td>
<td>—
</td></tr><tr><th>1941
</th>
<td>32</td>
<td>10%</td>
<td>81%</td>
<td>$5,000,000</td>
<td>$86.9 million</td>
<td>World War II
</td></tr><tr><th>1942
</th>
<td>24</td>
<td>19%</td>
<td>88%</td>
<td>$200,000</td>
<td>$3.13 million</td>
<td><a href="/wiki/Revenue_Act_of_1942" title="Revenue Act of 1942">Revenue Act of 1942</a>
</td></tr><tr><th>1944
</th>
<td>24</td>
<td>23%</td>
<td>94%</td>
<td>$200,000</td>
<td>$2.9 million</td>
<td nowrap><a href="/wiki/Individual_Income_Tax_Act_of_1944" title="Individual Income Tax Act of 1944">Individual Income Tax Act of 1944</a>
</td></tr><tr><th>1946
</th>
<td>24</td>
<td>19%</td>
<td>86.45%</td>
<td>$200,000</td>
<td>$2.62 million</td>
<td>—
</td></tr><tr><th>1948
</th>
<td>24</td>
<td>16.6%</td>
<td>82.13%</td>
<td>$400,000</td>
<td>$4.26 million</td>
<td>—
</td></tr><tr><th>1950
</th>
<td>24</td>
<td>17.4%</td>
<td>84.36%</td>
<td>$400,000</td>
<td>$4.25 million</td>
<td>—
</td></tr><tr><th>1951
</th>
<td>24</td>
<td>20.4%</td>
<td>91%</td>
<td>$400,000</td>
<td>$3.94 million</td>
<td>—
</td></tr><tr><th>1952
</th>
<td>26</td>
<td>22.2%</td>
<td>92%</td>
<td>$400,000</td>
<td>$3.85 million</td>
<td>—
</td></tr><tr><th>1954
</th>
<td>26</td>
<td>20%</td>
<td>91%</td>
<td>$400,000</td>
<td>$3.81 million</td>
<td>—
</td></tr><tr><th>1964
</th>
<td>26</td>
<td>16%</td>
<td>77%</td>
<td>$400,000</td>
<td>$3.3 million</td>
<td><a href="/wiki/Revenue_Act_of_1964" title="Revenue Act of 1964">Tax reduction during Vietnam war</a>
</td></tr><tr><th>1965
</th>
<td>25</td>
<td>14%</td>
<td>70%</td>
<td>$200,000</td>
<td>$1.62 million</td>
<td>—
</td></tr><tr><th>1968
</th>
<td>33</td>
<td>14%</td>
<td>75.25%</td>
<td>$200,000</td>
<td>$1.47 million</td>
<td>—
</td></tr><tr><th>1969
</th>
<td>33</td>
<td>14%</td>
<td>77%</td>
<td>$200,000</td>
<td>$1.39 million</td>
<td>—
</td></tr><tr><th>1970
</th>
<td>33</td>
<td>14%</td>
<td>71.75%</td>
<td>$200,000</td>
<td>$1.32 million</td>
<td>—
</td></tr><tr><th>1971
</th>
<td>33</td>
<td>14%</td>
<td>70%</td>
<td>$200,000</td>
<td>$1.26 million</td>
<td>—
</td></tr><tr><th>1981
</th>
<td>17</td>
<td>13.825%</td>
<td>69.125%</td>
<td>$215,400</td>
<td>$606 thousand</td>
<td><a href="/wiki/Reaganomics" title="Reaganomics">Reagan era tax cuts</a>
</td></tr><tr><th>1982
</th>
<td>14</td>
<td>12%</td>
<td>50%</td>
<td>$85,600</td>
<td>$227 thousand</td>
<td>Reagan era tax cuts
</td></tr><tr><th>1983
</th>
<td>14</td>
<td>11%</td>
<td>50%</td>
<td>$109,400</td>
<td>$281 thousand</td>
<td>—
</td></tr><tr><th>1987
</th>
<td>5</td>
<td>11%</td>
<td>38.5%</td>
<td>$90,000</td>
<td>$203 thousand</td>
<td>Reagan era tax cuts
</td></tr><tr><th>1988
</th>
<td>2</td>
<td>15%</td>
<td>28%</td>
<td>$29,750</td>
<td>$64.3 thousand</td>
<td>Reagan era tax cuts
</td></tr><tr><th>1991
</th>
<td>3</td>
<td>15%</td>
<td>31%</td>
<td>$82,150</td>
<td>$154 thousand</td>
<td><a href="/wiki/Omnibus_Budget_Reconciliation_Act_of_1990" title="Omnibus Budget Reconciliation Act of 1990">Omnibus Budget Reconciliation Act of 1990</a>
</td></tr><tr><th>1993
</th>
<td>5</td>
<td>15%</td>
<td>39.6%</td>
<td>$89,150</td>
<td>$158 thousand</td>
<td><a href="/wiki/Omnibus_Budget_Reconciliation_Act_of_1993" title="Omnibus Budget Reconciliation Act of 1993">Omnibus Budget Reconciliation Act of 1993</a>
</td></tr><tr><th>2001
</th>
<td>5</td>
<td>10%</td>
<td>39.1%</td>
<td>$297,350</td>
<td>$429 thousand</td>
<td>—
</td></tr><tr><th>2002
</th>
<td>6</td>
<td>10%</td>
<td>38.6%</td>
<td>$307,050</td>
<td>$436 thousand</td>
<td>—
</td></tr><tr><th>2003
</th>
<td>6</td>
<td>10%</td>
<td>35%</td>
<td>$311,950</td>
<td>$434 thousand</td>
<td><a href="/wiki/Bush_tax_cuts" title="Bush tax cuts">Bush tax cuts</a>
</td></tr><tr><th>2013
</th>
<td>7</td>
<td>10%</td>
<td>39.6%</td>
<td>$400,000</td>
<td>$439 thousand</td>
<td><a href="/wiki/American_Taxpayer_Relief_Act_of_2012" title="American Taxpayer Relief Act of 2012">American Taxpayer Relief Act of 2012</a>
</td></tr></tbody></table><h4 class="in-block"><span class="mw-headline" id="Federal_income_tax_rates">Federal income tax rates</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=41" title="Edit section: Federal income tax rates" data-section="41" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h4>
<p>Federal and state income tax rates have varied widely since 1913. For example, in 1954, the federal income tax was based on layers of 24 income brackets at tax rates ranging from 20% to 91% (for a chart, see <a href="/wiki/Internal_Revenue_Code_of_1954" class="mw-redirect" title="Internal Revenue Code of 1954">Internal Revenue Code of 1954</a>).
</p><p>Below is a table of historical <a href="/wiki/Marginal_income_tax_rates" class="mw-redirect" title="Marginal income tax rates">marginal income tax rates</a> for married filing jointly tax payers at stated income levels. These income numbers are not the amounts used in the tax laws at the time.
</p>
<table class="wikitable collapsible collapsed" style="margin:1em 1em 0 0; text-align:center"><tbody><tr><th colspan="6">Historical income tax rates <br> not adjusted for inflation (1913–2010)<sup id="cite_ref-83" class="reference"><a href="#cite_note-83">[83]</a></sup></th></tr><tr><th>Year
</th>
<th>$10,001
</th>
<th>$20,001
</th>
<th>$60,001
</th>
<th>$100,001
</th>
<th>$250,001
</th></tr><tr><th>1913
</th>
<td>1%</td>
<td>2%</td>
<td>3%</td>
<td>5%</td>
<td>6%
</td></tr><tr><th>1914
</th>
<td>1%</td>
<td>2%</td>
<td>3%</td>
<td>5%</td>
<td>6%
</td></tr><tr><th>1916
</th>
<td>2%</td>
<td>3%</td>
<td>5%</td>
<td>7%</td>
<td>10%
</td></tr><tr><th>1918
</th>
<td>16%</td>
<td>21%</td>
<td>41%</td>
<td>64%</td>
<td>72%
</td></tr><tr><th>1920
</th>
<td>12%</td>
<td>17%</td>
<td>37%</td>
<td>60%</td>
<td>68%
</td></tr><tr><th>1922
</th>
<td>10%</td>
<td>16%</td>
<td>36%</td>
<td>56%</td>
<td>58%
</td></tr><tr><th>1924
</th>
<td>7%</td>
<td>11%</td>
<td>27%</td>
<td>43%</td>
<td>44%
</td></tr><tr><th>1926
</th>
<td>6%</td>
<td>10%</td>
<td>21%</td>
<td>25%</td>
<td>25%
</td></tr><tr><th>1928
</th>
<td>6%</td>
<td>10%</td>
<td>21%</td>
<td>25%</td>
<td>25%
</td></tr><tr><th>1930
</th>
<td>6%</td>
<td>10%</td>
<td>21%</td>
<td>25%</td>
<td>25%
</td></tr><tr><th>1932
</th>
<td>10%</td>
<td>16%</td>
<td>36%</td>
<td>56%</td>
<td>58%
</td></tr><tr><th>1934
</th>
<td>11%</td>
<td>19%</td>
<td>37%</td>
<td>56%</td>
<td>58%
</td></tr><tr><th>1936
</th>
<td>11%</td>
<td>19%</td>
<td>39%</td>
<td>62%</td>
<td>68%
</td></tr><tr><th>1938
</th>
<td>11%</td>
<td>19%</td>
<td>39%</td>
<td>62%</td>
<td>68%
</td></tr><tr><th>1940
</th>
<td>14%</td>
<td>28%</td>
<td>51%</td>
<td>62%</td>
<td>68%
</td></tr><tr><th>1942
</th>
<td>38%</td>
<td>55%</td>
<td>75%</td>
<td>85%</td>
<td>88%
</td></tr><tr><th>1944
</th>
<td>41%</td>
<td>59%</td>
<td>81%</td>
<td>92%</td>
<td>94%
</td></tr><tr><th>1946
</th>
<td>38%</td>
<td>56%</td>
<td>78%</td>
<td>89%</td>
<td>91%
</td></tr><tr><th>1948
</th>
<td>38%</td>
<td>56%</td>
<td>78%</td>
<td>89%</td>
<td>91%
</td></tr><tr><th>1950
</th>
<td>38%</td>
<td>56%</td>
<td>78%</td>
<td>89%</td>
<td>91%
</td></tr><tr><th>1952
</th>
<td>42%</td>
<td>62%</td>
<td>80%</td>
<td>90%</td>
<td>92%
</td></tr><tr><th>1954
</th>
<td>38%</td>
<td>56%</td>
<td>78%</td>
<td>89%</td>
<td>91%
</td></tr><tr><th>1956
</th>
<td>26%</td>
<td>38%</td>
<td>62%</td>
<td>75%</td>
<td>89%
</td></tr><tr><th>1958
</th>
<td>26%</td>
<td>38%</td>
<td>62%</td>
<td>75%</td>
<td>89%
</td></tr><tr><th>1960
</th>
<td>26%</td>
<td>38%</td>
<td>62%</td>
<td>75%</td>
<td>89%
</td></tr><tr><th>1962
</th>
<td>26%</td>
<td>38%</td>
<td>62%</td>
<td>75%</td>
<td>89%
</td></tr><tr><th>1964
</th>
<td>23%</td>
<td>34%</td>
<td>56%</td>
<td>66%</td>
<td>76%
</td></tr><tr><th>1966–76
</th>
<td>22%</td>
<td>32%</td>
<td>53%</td>
<td>62%</td>
<td>70%
</td></tr><tr><th>1980
</th>
<td>18%</td>
<td>24%</td>
<td>54%</td>
<td>59%</td>
<td>70%
</td></tr><tr><th>1982
</th>
<td>16%</td>
<td>22%</td>
<td>49%</td>
<td>50%</td>
<td>50%
</td></tr><tr><th>1984
</th>
<td>14%</td>
<td>18%</td>
<td>42%</td>
<td>45%</td>
<td>50%
</td></tr><tr><th>1986
</th>
<td>14%</td>
<td>18%</td>
<td>38%</td>
<td>45%</td>
<td>50%
</td></tr><tr><th>1988
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>28%</td>
<td>28%
</td></tr><tr><th>1990
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>28%</td>
<td>28%
</td></tr><tr><th>1992
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>28%</td>
<td>31%
</td></tr><tr><th>1994
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>31%</td>
<td>39.6%
</td></tr><tr><th>1996
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>31%</td>
<td>36%
</td></tr><tr><th>1998
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>28%</td>
<td>36%
</td></tr><tr><th>2000
</th>
<td>15%</td>
<td>15%</td>
<td>28%</td>
<td>28%</td>
<td>36%
</td></tr><tr><th>2002
</th>
<td>10%</td>
<td>15%</td>
<td>27%</td>
<td>27%</td>
<td>35%
</td></tr><tr><th>2004
</th>
<td>10%</td>
<td>15%</td>
<td>25%</td>
<td>25%</td>
<td>33%
</td></tr><tr><th>2006
</th>
<td>10%</td>
<td>15%</td>
<td>15%</td>
<td>25%</td>
<td>33%
</td></tr><tr><th>2008
</th>
<td>10%</td>
<td>15%</td>
<td>15%</td>
<td>25%</td>
<td>33%
</td></tr><tr><th>2010
</th>
<td>10%</td>
<td>15%</td>
<td>15%</td>
<td>25%</td>
<td>33%
</td></tr><tr><th>2012
</th>
<td>10%</td>
<td>15%</td>
<td>15%</td>
<td>25%</td>
<td>39.6%
</td></tr></tbody></table></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(23)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Sources_of_U.S._income_tax_laws">Sources of U.S. income tax laws</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=42" title="Edit section: Sources of U.S. income tax laws" data-section="42" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-23 collapsible-block" id="mf-section-23">
<p>United States income tax law comes from a number of sources. These sources have been divided by one author into three tiers as follows:<sup id="cite_ref-84" class="reference"><a href="#cite_note-84">[84]</a></sup></p>
<ul><li><i>Tier 1</i>
<ul><li><a href="/wiki/United_States_Constitution" class="mw-redirect" title="United States Constitution">United States Constitution</a></li>
<li><a href="/wiki/Internal_Revenue_Code" title="Internal Revenue Code">Internal Revenue Code</a> (IRC) (legislative authority, written by the <a href="/wiki/United_States_Congress" title="United States Congress">United States Congress</a> through <a href="/wiki/Legislation" title="Legislation">legislation</a>)</li>
<li><a href="/wiki/Treasury_regulations" title="Treasury regulations">Treasury regulations</a></li>
<li><a href="/wiki/United_States_federal_courts" class="mw-redirect" title="United States federal courts">Federal court</a> <a href="/wiki/Legal_opinions" class="mw-redirect" title="Legal opinions">opinions</a> (judicial authority, written by courts as interpretation of legislation)</li>
<li><a href="/wiki/Treaties" class="mw-redirect" title="Treaties">Treaties</a> (executive authority, written in conjunction with other countries)</li></ul></li>
<li><i>Tier 2</i>
<ul><li>Agency interpretative regulations (executive authority, written by the <a href="/wiki/Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a> (IRS) and <a href="/wiki/United_States_Department_of_the_Treasury" title="United States Department of the Treasury">Department of the Treasury</a>), including:
<ul><li>Final, Temporary and Proposed Regulations promulgated under IRC § 7805;</li>
<li>Treasury Notices and Announcements;</li></ul></li>
<li>Public Administrative Rulings (IRS Revenue Rulings, which provide informal guidance on specific questions and are binding on all taxpayers)</li></ul></li>
<li><i>Tier 3</i>
<ul><li>Legislative History</li>
<li>Private Administrative Rulings (private parties may approach the IRS directly and ask for a Private Letter Ruling on a specific issue – these rulings are binding only on the requesting taxpayer).</li></ul></li></ul><p>Where conflicts exist between various sources of tax authority, an authority in Tier 1 outweighs an authority in Tier 2 or 3. Similarly, an authority in Tier 2 outweighs an authority in Tier 3.<sup id="cite_ref-Id_85-0" class="reference"><a href="#cite_note-Id-85">[85]</a></sup> Where conflicts exist between two authorities in the same tier, the "last-in-time rule" is applied. As the name implies, the "last-in-time rule" states that the authority that was issued later in time is controlling.<sup id="cite_ref-Id_85-1" class="reference"><a href="#cite_note-Id-85">[85]</a></sup></p><p>Regulations and case law serve to interpret the statutes. Additionally, various sources of law attempt to do the same thing. Revenue Rulings, for example, serves as an interpretation of how the statutes apply to a very specific set of facts. Treaties serve in an international realm.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(24)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="The_complexity_of_the_U.S._income_tax_laws">The complexity of the U.S. income tax laws</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=43" title="Edit section: The complexity of the U.S. income tax laws" data-section="43" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-24 collapsible-block" id="mf-section-24">
<p>United States tax law attempts to define a comprehensive<sup class="noprint Inline-Template" style="margin-left:0.1em; white-space:nowrap;">[<i><a href="/wiki/Wikipedia:Please_clarify" title="Wikipedia:Please clarify"><span title="The text near this tag may need clarification or removal of jargon. (October 2017)">clarification needed</span></a></i>]</sup> system of measuring income in a complex economy.  Many provisions defining income or granting or removing benefits require significant definition of terms.  Further, many state income tax laws do not conform with federal tax law in material respects.  These factors and others have resulted in substantial complexity.  Even venerable legal scholars like Judge <a href="/wiki/Learned_Hand" title="Learned Hand">Learned Hand</a> have expressed amazement and frustration with the complexity of the U.S. income tax laws. In the article, <i>Thomas Walter Swan</i>, 57 <a href="/wiki/Yale_Law_Journal" title="Yale Law Journal">Yale Law Journal</a> No. 2, 167, 169 (December 1947), Judge Hand wrote:
</p>
<blockquote>
<p>In my own case the words of such an act as the Income Tax ... merely dance before my eyes in a meaningless procession: cross-reference to cross-reference, exception upon exception—couched in abstract terms that offer [me] no handle to seize hold of [and that] leave in my mind only a confused sense of some vitally important, but successfully concealed, purport, which it is my duty to extract, but which is within my power, if at all, only after the most inordinate expenditure of time. I know that these monsters are the result of fabulous industry and ingenuity, plugging up this hole and casting out that net, against all possible evasion; yet at times I cannot help recalling a saying of William James about certain passages of Hegel: that they were no doubt written with a passion of rationality; but that one cannot help wondering whether to the reader they have any significance save that the words are strung together with syntactical correctness.
</p>
</blockquote>
<p>Complexity is a separate issue from flatness of rate structures. Also, in the United States, income tax laws are often used by legislatures as policy instruments for encouraging numerous undertakings deemed socially useful — including the buying of life insurance, the funding of employee health care and pensions, the raising of children, home ownership, and the development of alternative energy sources and increased investment in conventional energy. Special tax provisions granted for any purpose increase complexity, irrespective of the system's flatness or lack thereof.
</p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(25)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span id="State.2C_local_and_territorial_income_taxes"></span><span class="mw-headline" id="State,_local_and_territorial_income_taxes">State, local and territorial income taxes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=44" title="Edit section: State, local and territorial income taxes" data-section="44" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-25 collapsible-block" id="mf-section-25">
<div role="note" class="hatnote navigation-not-searchable">Main article: <a href="/wiki/State_income_tax" title="State income tax">State income tax</a></div>
<div class="thumb tleft"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/8/8a/Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg/220px-Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg.png" decoding="async" width="220" height="136" class="thumbimage" data-file-width="959" data-file-height="593"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 136px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/8/8a/Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg/220px-Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg.png" data-alt="" data-width="220" data-height="136" data-srcset="//upload.wikimedia.org/wikipedia/commons/thumb/8/8a/Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg/330px-Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg.png 1.5x, //upload.wikimedia.org/wikipedia/commons/thumb/8/8a/Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg/440px-Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg.png 2x" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Map_of_USA_highlighting_states_with_no_income_tax_on_wages.svg" class="internal" title="Enlarge"></a></div>Map of USA showing states with no state individual income tax in red, and states that tax individuals only interest and dividend income in yellow.</div></div></div>
<div class="thumb tright"><div class="thumbinner" style="width:222px;"><a href="/wiki/File:State_and_Local_income_taxes.png" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/9/9c/State_and_Local_income_taxes.png/220px-State_and_Local_income_taxes.png" decoding="async" width="220" height="143" class="thumbimage" data-file-width="1513" data-file-height="983"></noscript><span class="lazy-image-placeholder" style="width: 220px;height: 143px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/9/9c/State_and_Local_income_taxes.png/220px-State_and_Local_income_taxes.png" data-alt="" data-width="220" data-height="143" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:State_and_Local_income_taxes.png" class="internal" title="Enlarge"></a></div>States without state-level or local-level individual income taxes are in green.<br><br> States with state-level individual income tax on interest and dividends only but no local-level individual income taxes are in light green.<br><br> States with state-level individual income tax but not no local-level individual income taxes are in yellow.<br><br> States with state-level individual income tax and local-level individual income taxes on payroll only are in dark yellow/light orange.<br><br> States with state-level individual income tax and local-level individual income tax on interest and dividends only are in orange<br><br> States with state-level and local-level individual income taxes are in red.</div></div></div>
<p>Income tax is also levied by most <a href="/wiki/U.S._state" title="U.S. state">U.S. states</a> and many localities on individuals, corporations, estates, and trusts.  These taxes are in addition to federal income tax and are deductible for federal tax purposes.  State and local income tax rates vary from 1% to 16% of taxable income.<sup id="cite_ref-86" class="reference"><a href="#cite_note-86">[86]</a></sup>  Some state and local income tax rates are flat (single rate) and some are graduated.  State and local definitions of what income is taxable vary highly.  Some states incorporate the federal definitions by reference.  Taxable income is defined separately and differently for individuals and corporations in some jurisdictions.  Some states impose alternative or additional taxes based on a second measure of income or capital.
</p><p>States and localities tend to tax all income of residents.  States and localities only tax nonresidents on income allocated or apportioned to the jurisdiction.  Generally, nonresident individuals are taxed on wages earned in the state based on the portion of days worked in the state.  Many states require partnerships to pay tax for nonresident partners.
</p><p>Tax returns are filed separately for states and localities imposing income tax, and may be due on dates that differ from federal due dates.  Some states permit related corporations to file combined or consolidated returns.  Most states and localities imposing income tax require estimated payments where tax exceeds certain thresholds, and require <a href="/wiki/Withholding_tax" title="Withholding tax">withholding tax</a> on payment of wages.
</p><p><a href="/wiki/Puerto_Rico" title="Puerto Rico">Puerto Rico</a> is treated as a separate taxing entity from the USA; its income tax rates are set independently, and only some residents there pay federal income taxes<sup id="cite_ref-87" class="reference"><a href="#cite_note-87">[87]</a></sup> (though everyone must pay all other <a href="/wiki/Federal_taxation_in_the_United_States#Federal_taxation" class="mw-redirect" title="Federal taxation in the United States">federal taxes</a>).<sup id="cite_ref-88" class="reference"><a href="#cite_note-88">[Note 1]</a></sup>  The unincorporated territories <a href="/wiki/Guam" title="Guam">Guam</a>, <a href="/wiki/American_Samoa" title="American Samoa">American Samoa</a>, and the <a href="/wiki/U.S._Virgin_Islands" class="mw-redirect" title="U.S. Virgin Islands">Virgin Islands</a> also impose income tax separately, under a "mirror" tax law based on federal income tax law.
</p>
<div class="floatnone"><a href="/wiki/File:Total_State_Government_Tax_Revenue_By_Type.png" class="image" title="Total State Government Tax Revenue By Type in 2015"><noscript><img alt="Total State Government Tax Revenue By Type in 2015" src="//upload.wikimedia.org/wikipedia/commons/thumb/e/ed/Total_State_Government_Tax_Revenue_By_Type.png/400px-Total_State_Government_Tax_Revenue_By_Type.png" decoding="async" width="400" height="239" data-file-width="1623" data-file-height="968"></noscript><span class="lazy-image-placeholder" style="width: 400px;height: 239px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/e/ed/Total_State_Government_Tax_Revenue_By_Type.png/400px-Total_State_Government_Tax_Revenue_By_Type.png" data-alt="Total State Government Tax Revenue By Type in 2015" data-width="400" data-height="239"> </span></a></div>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(26)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Controversies">Controversies</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=45" title="Edit section: Controversies" data-section="45" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-26 collapsible-block" id="mf-section-26">
<h3 class="in-block"><span class="mw-headline" id="Proposals_for_changes_of_income_taxation">Proposals for changes of income taxation</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=46" title="Edit section: Proposals for changes of income taxation" data-section="46" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Proposals have been made frequently to change tax laws, often with the backing of specific interest groups. Organizations making such proposals include <a href="/wiki/Citizens_for_Tax_Justice" title="Citizens for Tax Justice">Citizens for Tax Justice</a>, <a href="/wiki/Americans_for_Tax_Reform" title="Americans for Tax Reform">Americans for Tax Reform</a>, Americans for Tax Fairness, <a href="/wiki/Citizens_for_an_Alternative_Tax_System" title="Citizens for an Alternative Tax System">Citizens for an Alternative Tax System</a>, <a href="/wiki/Americans_For_Fair_Taxation" title="Americans For Fair Taxation">Americans For Fair Taxation</a>, and <a href="/wiki/FreedomWorks" title="FreedomWorks">FreedomWorks</a>. Various proposals have been put forth for tax simplification in Congress including the <i><a href="/wiki/Fair_Tax_Act" class="mw-redirect" title="Fair Tax Act">Fair Tax Act</a></i> and various <a href="/wiki/Flat_tax" title="Flat tax">Flat tax</a> plans.
</p>
<h3 class="in-block"><span class="mw-headline" id="Alternatives">Alternatives</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=47" title="Edit section: Alternatives" data-section="47" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Proponents of a <a href="/wiki/Consumption_tax" title="Consumption tax">consumption tax</a> argue that the income tax system creates <a href="/wiki/Perverse_incentive" title="Perverse incentive">perverse incentives</a> by encouraging taxpayers to spend rather than save: a taxpayer is only taxed once on income spent immediately, while any interest earned on saved income is itself taxed.<sup id="cite_ref-89" class="reference"><a href="#cite_note-89">[88]</a></sup> To the extent that this is considered unjust, it may be remedied in a variety of ways, e.g. excluding investment income from taxable income, making investments deductible and therefore only taxing them when gains are realized, or replacing the income tax by other forms of tax, such as a sales tax.<sup id="cite_ref-90" class="reference"><a href="#cite_note-90">[89]</a></sup></p>
<h3 class="in-block"><span class="mw-headline" id="Taxation_vs._the_states">Taxation vs. the states</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=48" title="Edit section: Taxation vs. the states" data-section="48" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Some economists believe income taxation offers the federal government a technique to diminish the power of the states, because the federal government is then able to distribute funding to states with conditions attached, often giving the states no choice but to submit to federal demands.<sup id="cite_ref-91" class="reference"><a href="#cite_note-91">[90]</a></sup></p>
<h3 class="in-block"><span class="mw-headline" id="Tax_protestors">Tax protestors</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=49" title="Edit section: Tax protestors" data-section="49" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<p>Numerous <a href="/wiki/Tax_protester_arguments" title="Tax protester arguments">tax protester arguments</a> have been raised asserting that the federal income tax is unconstitutional, including discredited claims that the Sixteenth Amendment was not properly ratified. All such claims have been repeatedly rejected by the federal courts as <a href="/wiki/Frivolous_litigation" title="Frivolous litigation">frivolous</a>.<sup id="cite_ref-92" class="reference"><a href="#cite_note-92">[91]</a></sup></p>
<h3 class="in-block"><span class="mw-headline" id="Distribution">Distribution</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=50" title="Edit section: Distribution" data-section="50" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Further information: <a href="/wiki/Progressivity_in_United_States_income_tax" title="Progressivity in United States income tax">Progressivity in United States income tax</a></div>
<div class="thumb tright"><div class="thumbinner" style="width:252px;"><a href="/wiki/File:Distribution_of_U.S._Federal_Taxes_2000.JPG" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f9/Distribution_of_U.S._Federal_Taxes_2000.JPG/250px-Distribution_of_U.S._Federal_Taxes_2000.JPG" decoding="async" width="250" height="153" class="thumbimage" data-file-width="539" data-file-height="330"></noscript><span class="lazy-image-placeholder" style="width: 250px;height: 153px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/f/f9/Distribution_of_U.S._Federal_Taxes_2000.JPG/250px-Distribution_of_U.S._Federal_Taxes_2000.JPG" data-alt="" data-width="250" data-height="153" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:Distribution_of_U.S._Federal_Taxes_2000.JPG" class="internal" title="Enlarge"></a></div>Distribution of U.S. federal taxes for 2000 as a percentage of income among the family income quintiles.</div></div></div>
<div class="thumb tright"><div class="thumbinner" style="width:252px;"><a href="/wiki/File:CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png" class="image"><noscript><img alt="" src="//upload.wikimedia.org/wikipedia/commons/thumb/8/89/CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png/250px-CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png" decoding="async" width="250" height="152" class="thumbimage" data-file-width="689" data-file-height="420"></noscript><span class="lazy-image-placeholder" style="width: 250px;height: 152px;" data-src="//upload.wikimedia.org/wikipedia/commons/thumb/8/89/CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png/250px-CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png" data-alt="" data-width="250" data-height="152" data-class="thumbimage"> </span></a>  <div class="thumbcaption"><div class="magnify"><a href="/wiki/File:CBO_Effect_of_Taxes_and_Transfers_on_Income_Inequality_1979_to_2011.png" class="internal" title="Enlarge"></a></div>CBO chart illustrating the percent reduction in income inequality due to Federal taxes and income transfers from 1979 to 2011.<sup id="cite_ref-CBOInc&Tax2014_93-0" class="reference"><a href="#cite_note-CBOInc&Tax2014-93">[92]</a></sup></div></div></div>
<p>In the United States, a <a href="/wiki/Progressive_tax" title="Progressive tax">progressive tax system</a> is employed which equates to higher income earners paying a larger percentage of their income in taxes. According to the IRS, the top 1% of income earners for 2008 paid 38% of income tax revenue, while earning 20% of the income reported.<sup id="cite_ref-kiplinger_94-0" class="reference"><a href="#cite_note-kiplinger-94">[93]</a></sup> The top 5% of income earners paid 59% of the total income tax revenue, while earning 35% of the income reported.<sup id="cite_ref-kiplinger_94-1" class="reference"><a href="#cite_note-kiplinger-94">[93]</a></sup> The top 10% paid 70%, earning 46% and the top 25% paid 86%, earning 67%. The top 50% paid 97%, earning 87% and leaving the bottom 50% paying 3% of the taxes collected and earning 13% of the income reported.<sup id="cite_ref-kiplinger_94-2" class="reference"><a href="#cite_note-kiplinger-94">[93]</a></sup></p><p>From 1979 to 2007 the average federal income tax rate fell 110% for the second lowest quintile, 56% for the middle quintile, 39% for the fourth quintile, 8% for the highest quintile, and 15% for the top 1%, with the bottom quintile moving from a tax rate of zero to negative liability. Despite this, individual income tax revenue only dropped from 8.7 to 8.5% of GDP over that time, and total federal revenue was 18.5% of GDP in both 1979 and 2007, above the postwar average of 18%.<sup id="cite_ref-95" class="reference"><a href="#cite_note-95">[94]</a></sup> Tax code changes have dropped millions of lower earning people from the federal income tax rolls in recent decades. Those with zero or negative liability who were not claimed as dependents by a payer increased from 14.8% of the population in 1984 to 49.5% in 2009.<sup id="cite_ref-96" class="reference"><a href="#cite_note-96">[95]</a></sup><sup id="cite_ref-97" class="reference"><a href="#cite_note-97">[96]</a></sup></p><p>While there is consensus that overall federal taxation is progressive, there is dispute over whether progressivity has increased or decreased in recent decades, and by how much.<sup id="cite_ref-Saezprog_98-0" class="reference"><a href="#cite_note-Saezprog-98">[97]</a></sup><sup id="cite_ref-99" class="reference"><a href="#cite_note-99">[98]</a></sup> The total effective federal tax rate for the top 0.01% of income earners declined from around 75% to around 35% between 1960 and 2005.<sup id="cite_ref-Saezprog_98-1" class="reference"><a href="#cite_note-Saezprog-98">[97]</a></sup> Total effective federal tax rates fell from 19.1% to 12.5% for the three middle quintiles between 1979 and 2010, from 27.1% to 24% for the top quintile, from 7.5% to 1.5% for the bottom quintile, and from 35.1% to 29.4% for the top 1%.<sup id="cite_ref-100" class="reference"><a href="#cite_note-100">[99]</a></sup></p><p>A 2008 <a href="/wiki/Organisation_for_Economic_Co-operation_and_Development" class="mw-redirect" title="Organisation for Economic Co-operation and Development">OECD</a> study ranked 24 OECD nations by progressiveness of taxes and separately by progressiveness of cash transfers, which include pensions, unemployment and other benefits. The United States had the highest <i>concentration coefficient</i> in income tax, a measure of progressiveness, before adjusting for income inequality. The United States was not at the top of either measure for cash transfers. Adjusting for income inequality, Ireland had the highest concentration coefficient for income taxes. In 2008, overall income tax rates for the US were below the OECD average.<sup id="cite_ref-101" class="reference"><a href="#cite_note-101">[100]</a></sup></p>
<h3 class="in-block"><span class="mw-headline" id="Effects_on_income_inequality">Effects on income inequality</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=51" title="Edit section: Effects on income inequality" data-section="51" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h3>
<div role="note" class="hatnote navigation-not-searchable">Further information: <a href="/wiki/Income_inequality_in_the_United_States" title="Income inequality in the United States">Income inequality in the United States</a></div>
<p>According to the CBO, U.S. federal tax policies substantially reduce <a href="/wiki/Income_inequality" class="mw-redirect" title="Income inequality">income inequality</a> measured after taxes. Taxes became less progressive (i.e., they reduced income inequality relatively less) measured from 1979 to 2011. The tax policies of the mid-1980s were the least progressive period since 1979. Government transfer payments contributed more to reducing inequality than taxes.<sup id="cite_ref-CBOInc&Tax2014_93-1" class="reference"><a href="#cite_note-CBOInc&Tax2014-93">[92]</a></sup></p>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(27)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="See_also">See also</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=52" title="Edit section: See also" data-section="52" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-27 collapsible-block" id="mf-section-27">
<ul><li><i><a href="/wiki/Hylton_v._United_States" title="Hylton v. United States">Hylton v. United States</a></i> 3 U.S. 171 (1796)</li>
<li><a href="/wiki/Internal_Revenue_Code_%C2%A7_212" class="mw-redirect" title="Internal Revenue Code § 212">Internal Revenue Code § 212</a> – tax deductibility of investment expenses.</li>
<li><a href="/wiki/Payroll_taxes_in_the_United_States" class="mw-redirect" title="Payroll taxes in the United States">Payroll taxes in the United States</a></li>
<li><a href="/wiki/Tax_Day" title="Tax Day">Tax Day</a></li>
<li><a href="/wiki/Tax_preparation" class="mw-redirect" title="Tax preparation">Tax preparation</a></li>
<li><a href="/wiki/Taxation_of_illegal_income_in_the_United_States" title="Taxation of illegal income in the United States">Taxation of illegal income in the United States</a></li>
<li><a href="/wiki/U.S._State_Non-resident_Withholding_Tax" title="U.S. State Non-resident Withholding Tax">U.S. State Non-resident Withholding Tax</a></li></ul><p><b>Other Federal taxation:</b>
</p>
<ul><li><a href="/wiki/Capital_gains_tax_in_the_United_States" title="Capital gains tax in the United States">Capital gains tax in the United States</a></li>
<li><a href="/wiki/Corporate_tax_in_the_United_States" title="Corporate tax in the United States">Corporate tax in the United States</a></li></ul><p><b>US State taxes:</b>
</p>
<ul><li><a href="/wiki/Sales_taxes_in_the_United_States" title="Sales taxes in the United States">Sales taxes in the United States</a></li>
<li><a href="/wiki/State_income_tax" title="State income tax">State income tax</a></li>
<li><a href="/wiki/State_tax_levels" class="mw-redirect" title="State tax levels">State tax levels</a></li></ul><p><b>Politics:</b>
</p>
<ul><li><a href="/wiki/FairTax" title="FairTax">FairTax</a></li>
<li><a href="/wiki/Tax_protester_(United_States)" class="mw-redirect" title="Tax protester (United States)">Tax protester (United States)</a></li></ul><p><b>General:</b>
</p>
<ul><li><a href="/wiki/Taxation_in_the_United_States" title="Taxation in the United States">Taxation in the United States</a></li>
<li><a href="/wiki/Federal_tax_revenue_by_state" title="Federal tax revenue by state">Federal tax revenue by state</a></li></ul></section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(28)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Notes">Notes</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=53" title="Edit section: Notes" data-section="53" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-28 collapsible-block" id="mf-section-28">
<div class="reflist" style="list-style-type: decimal;">
<div class="mw-references-wrap"><ol class="references"><li id="cite_note-88"><span class="mw-cite-backlink"><b><a href="#cite_ref-88">^</a></b></span> <span class="reference-text">Contrary to common misconception, residents of Puerto Rico do pay U.S. federal taxes: customs taxes (which are subsequently returned to the Puerto Rico Treasury) (See <a rel="nofollow" class="external text" href="http://www.doi.gov/oia/Islandpages/prpage.htm">Dept of the Interior, Office of Insular Affairs. DOI.gov)</a>  <a rel="nofollow" class="external text" href="https://web.archive.org/web/20120610225702/http://www.doi.gov/oia/Islandpages/prpage.htm">Archived</a> 2012-06-10 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>, import/export taxes (See <a rel="nofollow" class="external text" href="http://stanford.wellsphere.com/healthcare-industry-policy-article/puerto-rico/267827">Stanford.wellsphere.com)</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20100401034052/http://stanford.wellsphere.com/healthcare-industry-policy-article/puerto-rico/267827">Archived</a> 2010-04-01 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>, federal commodity taxes (See <a rel="nofollow" class="external text" href="http://stanford.wellsphere.com/healthcare-industry-policy-article/puerto-rico/267827">Stanford.wellsphere.com)</a> , social security taxes (See <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc903.html">IRS.gov)</a>, etc. Residents pay federal <a href="/wiki/Payroll_tax" title="Payroll tax">payroll taxes</a>, such as <a href="/wiki/Social_Security_(United_States)" title="Social Security (United States)">Social Security</a> (See <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc903.html">IRS.gov</a>) and <a href="/wiki/Medicare_(United_States)" title="Medicare (United States)">Medicare</a> (See <a rel="nofollow" class="external text" href="https://www.reuters.com/article/healthNews/idUSTRE58N5X320090924">Reuters.com)</a>, as well as Commonwealth of Puerto Rico income taxes (See <a rel="nofollow" class="external text" href="http://www.puertorico-herald.org/issues/2003/vol7n19/USNotInnocent-en.html">Puertorico-herald.org</a> and <a rel="nofollow" class="external text" href="http://www.htrcpa.com/businessinpr1.html">HTRCPA.com</a>   <a rel="nofollow" class="external text" href="https://web.archive.org/web/20110429222842/http://www.htrcpa.com/businessinpr1.html">Archived</a> April 29, 2011, at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>). All federal employees (See <a rel="nofollow" class="external text" href="http://www.heritage.org/research/taxes/wm2338.cfm">Heritage.org)</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20100210124900/http://www.heritage.org/Research/Taxes/wm2338.cfm">Archived</a> 2010-02-10 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>, those who do business with the federal government (See <a rel="nofollow" class="external text" href="http://www.mcvpr.com/CM/CurrentEvents/CEOsummitarticle.pdf">MCVPR.com)</a>  <a rel="nofollow" class="external text" href="https://www.webcitation.org/5mp67ZoSs?url=http://www.mcvpr.com/CM/CurrentEvents/CEOsummitarticle.pdf">Archived</a> 2010-01-16 at <a href="/wiki/WebCite" title="WebCite">WebCite</a>, Puerto Rico-based corporations that intend to send funds to the U.S. (See <a rel="nofollow" class="external text" href="http://www.jct.gov/x-24-06.pdf">p. 9, line 1.)</a>, and some others (For example, Puerto Rican residents that are members of the U.S. military, See <a rel="nofollow" class="external text" href="http://www.heritage.org/research/taxes/wm2338.cfm">Heritage.org</a> ; and Puerto Rico residents who earned income from sources outside Puerto Rico, See <a rel="nofollow" class="external text" href="http://www.jct.gov/x-24-06.pdf,">pp 14–15.)</a> also pay federal income taxes. In addition, because the cutoff point for income taxation is lower than that of the U.S. IRS code, and because the per-capita income in Puerto Rico is much lower than the average per-capita income on the mainland, more Puerto Rico residents pay income taxes to the local taxation authority than if the IRS code were applied to the island. This occurs because "the Commonwealth of Puerto Rico government has a wider set of responsibilities than do U.S. State and local governments" (See <a rel="nofollow" class="external text" href="http://www.gao.gov/products/GAO-06-541">GAO.gov</a>). As residents of Puerto Rico pay into Social Security, Puerto Ricans are eligible for Social Security benefits upon retirement, but are excluded from the <a href="/wiki/Supplemental_Security_Income" title="Supplemental Security Income">Supplemental Security Income</a> (SSI) (Commonwealth of Puerto Rico residents, unlike residents of the Commonwealth of the Northern Mariana Islands and residents of the 50 States, do not receive the SSI. See <a rel="nofollow" class="external text" href="http://www.socialsecurity.gov/OP_Home/handbook/handbook.21/handbook-2114.html">Socialsecurity.gov)</a>, and the island actually receives less than 15% of the <a href="/wiki/Medicaid" title="Medicaid">Medicaid</a> funding it would normally receive if it were a U.S. state. However, Medicare providers receive less-than-full state-like reimbursements for services rendered to beneficiaries in Puerto Rico, even though the latter paid fully into the system (See <a rel="nofollow" class="external text" href="http://www.prfaa.com/news/?p=252">p 252).</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20110511054048/http://www.prfaa.com/news/?p=252">Archived</a> 2011-05-11 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a> In general, "many federal social welfare programs have been extended to Puerto Rican (<i>sic</i>) residents, although usually with caps inferior to those allocated to the states." (<b>The Louisiana Purchase and American Expansion: 1803–1898</b>. By Sanford Levinson and Bartholomew H. Sparrow. New York: Rowman and Littlefield Publishers. 2005. Page 167.  For a comprehensive coverage of federal programs made extensive to Puerto Rico see Richard Cappalli's <b>Federal Aid to Puerto Rico</b> (1970)). It has also been estimated (See <a rel="nofollow" class="external text" href="http://www.eagleforum.org/column/2007/mar07/07-03-28.html">Egleforum.org</a>) that, because the population of the Island is greater than that of 50% of the States, if it were a state, Puerto Rico would have six to eight seats in the House, in addition to the two seats in the Senate.(See <a rel="nofollow" class="external text" href="http://www.eagleforum.org/column/2007/mar07/07-03-28.html">Eagleforum.org</a>, <a rel="nofollow" class="external text" href="http://www.crf-usa.org/bill-of-rights-in-action/bria-17-4-c.html#">CRF-USA.org</a>  <a rel="nofollow" class="external text" href="https://web.archive.org/web/20090610210536/http://www.crf-usa.org/bill-of-rights-in-action/bria-17-4-c.html">Archived</a> 2009-06-10 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a> and <a rel="nofollow" class="external text" href="http://www.thomas.gov/cgi-bin/cpquery/?&sid=cp1109rs5H&refer=&r_n=hr597.110">Thomas.gov</a> [For the later, the official U.S. Congress database website, you will need to resubmit a query. The document in question is called "House Report 110-597 - <a href="/wiki/Puerto_Rico_Democracy_Act#Puerto_Rico_Democracy_Act_of_2007" title="Puerto Rico Democracy Act">Puerto Rico Democracy Act of 2007</a>." These are the steps to follow: <a rel="nofollow" class="external text" href="http://www.thomas.gov">THOMAS.gov</a> > Committee Reports > 110 > drop down "Word/Phrase" and pick "Report Number" > type "597" next to Report Number. This will provide the document "House Report 110-597 -  2007", then from the Table of Contents choose "Background and need for legislation".). Another misconception is that the import/export taxes collected by the U.S. on products manufactured in Puerto Rico are all returned to the Puerto Rico Treasury. This is not the case. Such import/export taxes are returned <i>only</i> for rum products, and even then the US Treasury keeps a portion of those taxes (See the "House Report 110-597 - <a href="/wiki/Puerto_Rico_Democracy_Act#Puerto_Rico_Democracy_Act_of_2007" title="Puerto Rico Democracy Act">Puerto Rico Democracy Act of 2007</a>" mentioned above.)</span>
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</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(29)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="References">References</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=54" title="Edit section: References" data-section="54" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-29 collapsible-block" id="mf-section-29">
<div class="reflist" style="list-style-type: decimal;">
<div class="mw-references-wrap mw-references-columns"><ol class="references"><li id="cite_note-1"><span class="mw-cite-backlink"><b><a href="#cite_ref-1">^</a></b></span> <span class="reference-text">See below for additional reading.  The U.S. <a href="/wiki/Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a> offers many free <a rel="nofollow" class="external text" href="https://www.irs.gov/app/picklist/list/publicationsNoticesPdf.html">publications</a> which are available online, including one for <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p17.pdf">individuals</a> and one for <a rel="nofollow" class="external text" href="https://www.irs.gov/publications/p542/index.html">corporations</a>, in both .pdf and web formats. An incomplete index is available <a rel="nofollow" class="external text" href="https://www.irs.gov/formspubs/article/0,,id=98171,00.html">by topic</a>. Many states offer similar publications.</span>
</li>
<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://www.iowa.gov/tax/taxlaw/taxtypes.html">"Iowa Tax / Fee Descriptions and Rates"</a>. Iowa.gov<span class="reference-accessdate">. Retrieved <span class="nowrap">December 7,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Iowa+Tax+%2F+Fee+Descriptions+and+Rates&rft.pub=Iowa.gov&rft_id=http%3A%2F%2Fwww.iowa.gov%2Ftax%2Ftaxlaw%2Ftaxtypes.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><style data-mw-deduplicate="TemplateStyles:r935243608">.mw-parser-output cite.citation{font-style:inherit}.mw-parser-output .citation q{quotes:"\"""\"""'""'"}.mw-parser-output .id-lock-free a,.mw-parser-output .citation .cs1-lock-free a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/6/65/Lock-green.svg/9px-Lock-green.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .id-lock-limited a,.mw-parser-output .id-lock-registration a,.mw-parser-output .citation .cs1-lock-limited a,.mw-parser-output .citation .cs1-lock-registration a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/d/d6/Lock-gray-alt-2.svg/9px-Lock-gray-alt-2.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .id-lock-subscription a,.mw-parser-output .citation .cs1-lock-subscription a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/a/aa/Lock-red-alt-2.svg/9px-Lock-red-alt-2.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output .cs1-subscription,.mw-parser-output .cs1-registration{color:#555}.mw-parser-output .cs1-subscription span,.mw-parser-output .cs1-registration span{border-bottom:1px dotted;cursor:help}.mw-parser-output .cs1-ws-icon a{background:url("//upload.wikimedia.org/wikipedia/commons/thumb/4/4c/Wikisource-logo.svg/12px-Wikisource-logo.svg.png")no-repeat;background-position:right .1em center}.mw-parser-output code.cs1-code{color:inherit;background:inherit;border:inherit;padding:inherit}.mw-parser-output .cs1-hidden-error{display:none;font-size:100%}.mw-parser-output .cs1-visible-error{font-size:100%}.mw-parser-output .cs1-maint{display:none;color:#33aa33;margin-left:0.3em}.mw-parser-output .cs1-subscription,.mw-parser-output .cs1-registration,.mw-parser-output .cs1-format{font-size:95%}.mw-parser-output .cs1-kern-left,.mw-parser-output .cs1-kern-wl-left{padding-left:0.2em}.mw-parser-output .cs1-kern-right,.mw-parser-output .cs1-kern-wl-right{padding-right:0.2em}</style></span>
</li>
<li id="cite_note-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-3">^</a></b></span> <span class="reference-text">CCH <i>State Tax Handbook</i> 2018, page 617, <i>et seq</i>.</span>
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<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text">CCH <i>State Tax Handbook</i> 2018, page 254, <i>et seq</i>.</span>
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<li id="cite_note-5"><span class="mw-cite-backlink"><b><a href="#cite_ref-5">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://www.ecfr.gov/cgi-bin/text-idx?f&mc=true&tpl=/ecfrbrowse/Title26/26tab_02.tpl">"eCFR — Code of Federal Regulations"</a>. <i>www.ecfr.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.ecfr.gov&rft.atitle=eCFR+%E2%80%94+Code+of+Federal+Regulations&rft_id=http%3A%2F%2Fwww.ecfr.gov%2Fcgi-bin%2Ftext-idx%3Ff%26mc%3Dtrue%26tpl%3D%2Fecfrbrowse%2FTitle26%2F26tab_02.tpl&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text">CCH <i>State Tax Handbook</i> 2018, page 617, <i>et seq</i>.</span>
</li>
<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/i1120ss3.pdf">IRS instructions</a> for Form 1120 Schedule M-3</span>
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<li id="cite_note-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-8">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.jct.gov/publications.html?func=startdown&id=4363">JCX-49-11</a>, Joint Committee on Taxation, September 22, 2011, pp 4, 50.</span>
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<li id="cite_note-9"><span class="mw-cite-backlink"><b><a href="#cite_ref-9">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p502.pdf">"IRS Pub. 502"</a> <span class="cs1-format">(PDF)</span>. IRS.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=IRS+Pub.+502&rft.pub=IRS&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fp502.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"> Note: limit is 7.5% for those over age 65.</span>
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<li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/businesses/small-businesses-self-employed/questions-and-answers-for-the-additional-medicare-tax">"Questions and Answers for the Additional Medicare Tax"</a>. <i><a href="/wiki/Internal_Revenue_Service" title="Internal Revenue Service">Internal Revenue Service</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">July 6,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=Internal+Revenue+Service&rft.atitle=Questions+and+Answers+for+the+Additional+Medicare+Tax&rft_id=https%3A%2F%2Fwww.irs.gov%2Fbusinesses%2Fsmall-businesses-self-employed%2Fquestions-and-answers-for-the-additional-medicare-tax&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/i1040.pdf">"Chart C—Other Situations When You Must File"</a> <span class="cs1-format">(PDF)</span>. IRS<span class="reference-accessdate">. Retrieved <span class="nowrap">September 30,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Chart+C%E2%80%94Other+Situations+When+You+Must+File&rft.pub=IRS&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fi1040.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text">"Income inequality: Top 1 percent took record share of 2012 U.S. income, Associated Press, Sept. 10, 2013</span>
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<li id="cite_note-CBO-13"><span class="mw-cite-backlink">^ <a href="#cite_ref-CBO_13-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-CBO_13-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-CBO_13-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://cbo.gov/publication/44604">"The Distribution of Household Income and Federal Taxes, 2010"</a>. The US Congressional Budget Office (CBO). December 4, 2013<span class="reference-accessdate">. Retrieved <span class="nowrap">January 6,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Distribution+of+Household+Income+and+Federal+Taxes%2C+2010&rft.pub=The+US+Congressional+Budget+Office+%28CBO%29&rft.date=2013-12-04&rft_id=http%3A%2F%2Fcbo.gov%2Fpublication%2F44604&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-Tax_Foundation-14"><span class="mw-cite-backlink">^ <a href="#cite_ref-Tax_Foundation_14-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Tax_Foundation_14-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://taxfoundation.org/blog/it-matters-how-tax-brackets-are-adjusted">"It matters how tax brackets are adjusted"</a>. Tax Foundation. October 10, 2014<span class="reference-accessdate">. Retrieved <span class="nowrap">March 16,</span> 2016</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=It+matters+how+tax+brackets+are+adjusted&rft.pub=Tax+Foundation&rft.date=2014-10-10&rft_id=http%3A%2F%2Ftaxfoundation.org%2Fblog%2Fit-matters-how-tax-brackets-are-adjusted&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-15"><span class="mw-cite-backlink"><b><a href="#cite_ref-15">^</a></b></span> <span class="reference-text"><cite class="citation web">Gramm, Phil (October 8, 2017). <a rel="nofollow" class="external text" href="https://www.wsj.com/articles/the-gops-tax-the-rich-temptation-1507487704">"The GOP's 'Tax the Rich' Temptation"</a><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span> – via www.wsj.com.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+GOP%27s+%27Tax+the+Rich%27+Temptation&rft.date=2017-10-08&rft.aulast=Gramm&rft.aufirst=Phil&rft_id=https%3A%2F%2Fwww.wsj.com%2Farticles%2Fthe-gops-tax-the-rich-temptation-1507487704&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-IRS.gov-16"><span class="mw-cite-backlink">^ <a href="#cite_ref-IRS.gov_16-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-IRS.gov_16-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-drop/rp-08-66.pdf">"IRS.gov"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS.gov&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-drop%2Frp-08-66.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-17"><span class="mw-cite-backlink"><b><a href="#cite_ref-17">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-drop/rp-09-50.pdf">"IRS.gov"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS.gov&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-drop%2Frp-09-50.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-18"><span class="mw-cite-backlink"><b><a href="#cite_ref-18">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/publications/p505/ch02.html#en_US_2011_publink1000234349">"Publication 505 (2018), Tax Withholding and Estimated Tax - Internal Revenue Service"</a>. <i>www.irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.irs.gov&rft.atitle=Publication+505+%282018%29%2C+Tax+Withholding+and+Estimated+Tax+-+Internal+Revenue+Service&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpublications%2Fp505%2Fch02.html%23en_US_2011_publink1000234349&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-19"><span class="mw-cite-backlink"><b><a href="#cite_ref-19">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-drop/rp-11-52.pdf">"IRS.gov – 2012 Tax Rate Tables"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS.gov+%E2%80%93+2012+Tax+Rate+Tables&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-drop%2Frp-11-52.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-20"><span class="mw-cite-backlink"><b><a href="#cite_ref-20">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-prior/p17--2013.pdf">"IRS Pub 17, 2013"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS+Pub+17%2C+2013&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-prior%2Fp17--2013.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-21"><span class="mw-cite-backlink"><b><a href="#cite_ref-21">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-prior/p17--2014.pdf">"IRS Pub. 17, 2014"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS+Pub.+17%2C+2014&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-prior%2Fp17--2014.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-22"><span class="mw-cite-backlink"><b><a href="#cite_ref-22">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p17.pdf">"IRS Pub. 17, 2015"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS+Pub.+17%2C+2015&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-pdf%2Fp17.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-23"><span class="mw-cite-backlink"><b><a href="#cite_ref-23">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-drop/rp-15-53.pdf">"IRS Rev Proc 15-53"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS+Rev+Proc+15-53&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-drop%2Frp-15-53.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-24"><span class="mw-cite-backlink"><b><a href="#cite_ref-24">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-drop/rp-16-55.pdf">"IRS Rev Proc 2016-55"</a> <span class="cs1-format">(PDF)</span>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=IRS+Rev+Proc+2016-55&rft_id=https%3A%2F%2Fwww.irs.gov%2Fpub%2Firs-drop%2Frp-16-55.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-25"><span class="mw-cite-backlink"><b><a href="#cite_ref-25">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=%28title:26%20section:1411%20edition:prelim%29%20OR%20%28granuleid:USC-prelim-title26-section1411%29&f=treesort&edition=prelim&num=0&jumpTo=true#">26 USC 1411</a>.</span>
</li>
<li id="cite_note-congress.gov-26"><span class="mw-cite-backlink"><b><a href="#cite_ref-congress.gov_26-0">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external autonumber" href="https://www.congress.gov/115/bills/hr1/BILLS-115hr1enr.pdf">[1]</a></span>
</li>
<li id="cite_note-2019_tax_rates-27"><span class="mw-cite-backlink"><b><a href="#cite_ref-2019_tax_rates_27-0">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external autonumber" href="https://www.creditkarma.com/tax/i/2019-tax-brackets-things-to-know/">[2]</a></span>
</li>
<li id="cite_note-28"><span class="mw-cite-backlink"><b><a href="#cite_ref-28">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/i1040gi.pdf">IRS 1040 Instructions for 2016: Tax Tables</a>, page 81.</span>
</li>
<li id="cite_note-29"><span class="mw-cite-backlink"><b><a href="#cite_ref-29">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/newsroom/article/0,,id=232590,00.html">"Payroll Tax Cut to Boost Take-Home Pay for Most Workers"</a>. <i>irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=irs.gov&rft.atitle=Payroll+Tax+Cut+to+Boost+Take-Home+Pay+for+Most+Workers&rft_id=https%3A%2F%2Fwww.irs.gov%2Fnewsroom%2Farticle%2F0%2C%2Cid%3D232590%2C00.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-30"><span class="mw-cite-backlink"><b><a href="#cite_ref-30">^</a></b></span> <span class="reference-text"><cite class="citation news"><a rel="nofollow" class="external text" href="https://www.nytimes.com/interactive/2012/01/18/us/effective-income-tax-rates.html">"Effective Income Tax Rates"</a>. <i>The New York Times</i>. January 17, 2012.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+New+York+Times&rft.atitle=Effective+Income+Tax+Rates&rft.date=2012-01-17&rft_id=https%3A%2F%2Fwww.nytimes.com%2Finteractive%2F2012%2F01%2F18%2Fus%2Feffective-income-tax-rates.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-31"><span class="mw-cite-backlink"><b><a href="#cite_ref-31">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.cbo.gov/publication/49440">"The Distribution of Household Income and Federal Taxes, 2011"</a>. Congressional Budget Office<span class="reference-accessdate">. Retrieved <span class="nowrap">January 20,</span> 2015</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Distribution+of+Household+Income+and+Federal+Taxes%2C+2011&rft.pub=Congressional+Budget+Office&rft_id=https%3A%2F%2Fwww.cbo.gov%2Fpublication%2F49440&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-26_USC_61-32"><span class="mw-cite-backlink">^ <a href="#cite_ref-26_USC_61_32-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-26_USC_61_32-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section61&num=0&edition=prelim">26 USC 61</a>.</span>
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<li id="cite_note-33"><span class="mw-cite-backlink"><b><a href="#cite_ref-33">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.ecfr.gov/cgi-bin/text-idx?&mc=true&node=se26.2.1_161_61&rgn=div8">26 CFR 1.61-1(a)</a>.</span>
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<li id="cite_note-34"><span class="mw-cite-backlink"><b><a href="#cite_ref-34">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section162&num=0&edition=prelim">26 USC 162</a>, <i>et seq</i>.</span>
</li>
<li id="cite_note-35"><span class="mw-cite-backlink"><b><a href="#cite_ref-35">^</a></b></span> <span class="reference-text">IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p535.pdf">Publication 535</a>, Business Expenses; Fox chapter 22, Hoffman chapters 6 and 7, Pratt chapters 7 and 10.</span>
</li>
<li id="cite_note-36"><span class="mw-cite-backlink"><b><a href="#cite_ref-36">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section263&num=0&edition=prelim">26 USC 263</a>.</span>
</li>
<li id="cite_note-37"><span class="mw-cite-backlink"><b><a href="#cite_ref-37">^</a></b></span> <span class="reference-text">26 USC 168, <i>et seq</i>, IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p946.pdf">Publication 946</a>, How to Depreciate Property; Fox chapter 24, Hoffman chapter 8, Pratt chapter 9.</span>
</li>
<li id="cite_note-38"><span class="mw-cite-backlink"><b><a href="#cite_ref-38">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1011&num=0&edition=prelim">26 USC 1011</a>, <i>et seq.</i>, <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc409.html">IRS Topic 409</a>, Capital Gains and Losses, Fox chapters 13–14, Hoffman chapters 13–14, Pratt chapters 14–17.</span>
</li>
<li id="cite_note-39"><span class="mw-cite-backlink"><b><a href="#cite_ref-39">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section469&num=0&edition=prelim">26 USC 269</a>, IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p925.pdf">Publication 925</a>, Passive Activities. Losses from an activity are deductible against other income on disposal of the activity.</span>
</li>
<li id="cite_note-40"><span class="mw-cite-backlink"><b><a href="#cite_ref-40">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section151&num=0&edition=prelim">26 USC 151</a>.</span>
</li>
<li id="cite_note-41"><span class="mw-cite-backlink"><b><a href="#cite_ref-41">^</a></b></span> <span class="reference-text">26 USC 262, 163, 164, 170; IRS Form 1040, <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/f1040sca.pdf">Schedule A</a>; Fox chapter 21, Hoffman chapter 10, Pratt chapter 11.</span>
</li>
<li id="cite_note-42"><span class="mw-cite-backlink"><b><a href="#cite_ref-42">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section265&num=0&edition=prelim">26 USC 265</a>, <i>et seq</i>.</span>
</li>
<li id="cite_note-43"><span class="mw-cite-backlink"><b><a href="#cite_ref-43">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section68&num=0&edition=prelim">26 USC 68</a>.</span>
</li>
<li id="cite_note-44"><span class="mw-cite-backlink"><b><a href="#cite_ref-44">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/text/26/121">26 USC 121</a>.</span>
</li>
<li id="cite_note-45"><span class="mw-cite-backlink"><b><a href="#cite_ref-45">^</a></b></span> <span class="reference-text">See generally <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc409.html">26 USC 1045</a>, IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/tc409.html">Topic 409</a>, Capital Gains and Losses and Publication 535, above; Fox chapters 13-14, Hoffman chapters 13–14, Pratt chapters 16–17.</span>
</li>
<li id="cite_note-Lowrey-46"><span class="mw-cite-backlink"><b><a href="#cite_ref-Lowrey_46-0">^</a></b></span> <span class="reference-text"><cite class="citation news">Lowrey, Annie (January 4, 2013). <a rel="nofollow" class="external text" href="https://www.nytimes.com/2013/01/05/business/after-fiscal-deal-tax-code-may-be-most-progressive-since-1979.html">"Tax Code May Be the Most Progressive Since 1979"</a>. <i><a href="/wiki/The_New_York_Times" title="The New York Times">The New York Times</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">January 6,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+New+York+Times&rft.atitle=Tax+Code+May+Be+the+Most+Progressive+Since+1979&rft.date=2013-01-04&rft.aulast=Lowrey&rft.aufirst=Annie&rft_id=https%3A%2F%2Fwww.nytimes.com%2F2013%2F01%2F05%2Fbusiness%2Fafter-fiscal-deal-tax-code-may-be-most-progressive-since-1979.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-47"><span class="mw-cite-backlink"><b><a href="#cite_ref-47">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/Individuals/EITC-Income-Limits,-Maximum-Credit--Amounts-and-Tax-Law-Updates">"EITC Income Limits Maximum Credit Amounts - Internal Revenue Service"</a>. <i>www.irs.gov</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=www.irs.gov&rft.atitle=EITC+Income+Limits+Maximum+Credit+Amounts+-+Internal+Revenue+Service&rft_id=https%3A%2F%2Fwww.irs.gov%2FIndividuals%2FEITC-Income-Limits%2C-Maximum-Credit--Amounts-and-Tax-Law-Updates&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-48"><span class="mw-cite-backlink"><b><a href="#cite_ref-48">^</a></b></span> <span class="reference-text">Fox, chapter 32; Hoffman, chapter 16; Pratt, chapter 5.</span>
</li>
<li id="cite_note-Campell-49"><span class="mw-cite-backlink"><b><a href="#cite_ref-Campell_49-0">^</a></b></span> <span class="reference-text"><cite class="citation news">Campbell, Andrea (September–October 2012). <a rel="nofollow" class="external text" href="http://www.foreignaffairs.com/articles/137838/andrea-louise-campbell/america-the-undertaxed">"America the Undertaxed, U.S. Fiscal Policy in Perspective"</a>. <i>Foreign Affairs</i><span class="reference-accessdate">. Retrieved <span class="nowrap">October 1,</span> 2012</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Foreign+Affairs&rft.atitle=America+the+Undertaxed%2C+U.S.+Fiscal+Policy+in+Perspective&rft.date=2012-09%2F2012-10&rft.aulast=Campbell&rft.aufirst=Andrea&rft_id=http%3A%2F%2Fwww.foreignaffairs.com%2Farticles%2F137838%2Fandrea-louise-campbell%2Famerica-the-undertaxed&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-50"><span class="mw-cite-backlink"><b><a href="#cite_ref-50">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section871&num=0&edition=prelim">26 USC 871</a> and [ 26 USC 881].</span>
</li>
<li id="cite_note-51"><span class="mw-cite-backlink"><b><a href="#cite_ref-51">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section871&num=0&edition=prelim">26 USC 871(b)</a> and <a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section882&num=0&edition=prelim">26 USC 881</a>.</span>
</li>
<li id="cite_note-52"><span class="mw-cite-backlink"><b><a href="#cite_ref-52">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6012&num=0&edition=prelim">26 USC 6012</a>.</span>
</li>
<li id="cite_note-IRS509-2017-53"><span class="mw-cite-backlink">^ <a href="#cite_ref-IRS509-2017_53-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-IRS509-2017_53-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p509.pdf">Publication 509: Tax Calendars for use in 2017</a>, U.S. Internal Revenue Service, Cat. No. 15013X</span>
</li>
<li id="cite_note-54"><span class="mw-cite-backlink"><b><a href="#cite_ref-54">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://www.usconstitution.net/xconst_A1Sec8.html">"U.S. Constitution - Article 1 Section 8 - The U.S. Constitution Online - USConstitution.net"</a>. <i>usconstitution.net</i><span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=usconstitution.net&rft.atitle=U.S.+Constitution+-+Article+1+Section+8+-+The+U.S.+Constitution+Online+-+USConstitution.net&rft_id=http%3A%2F%2Fwww.usconstitution.net%2Fxconst_A1Sec8.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-55"><span class="mw-cite-backlink"><b><a href="#cite_ref-55">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Hylton_v._United_States" title="Hylton v. United States">Hylton v. United States</a></i>, 3 U.S. 171 (1796).  <i>Penn Mutual Indemnity Co. v. Commissioner</i>, 227 F.2d 16, 19–20 (<a href="/wiki/3rd_Cir." class="mw-redirect" title="3rd Cir.">3rd Cir.</a> 1960).</span>
</li>
<li id="cite_note-56"><span class="mw-cite-backlink"><b><a href="#cite_ref-56">^</a></b></span> <span class="reference-text"><i><a href="/wiki/Steward_Machine_Co._v._Davis" title="Steward Machine Co. v. Davis">Steward Machine Co. v. Davis</a></i>, <a href="/wiki/List_of_United_States_Supreme_Court_cases,_volume_301" title="List of United States Supreme Court cases, volume 301">301</a> <a href="/wiki/United_States_Reports" title="United States Reports">U.S.</a> <a rel="nofollow" class="external text" href="https://supreme.justia.com/cases/federal/us/301/548/">548</a> (1937), 581–582</span>
</li>
<li id="cite_note-57"><span class="mw-cite-backlink"><b><a href="#cite_ref-57">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://www.taxworld.org/History/TaxHistory.htm">"A History of Taxation"</a>. Taxworld<span class="reference-accessdate">. Retrieved <span class="nowrap">December 7,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=A+History+of+Taxation&rft.pub=Taxworld&rft_id=http%3A%2F%2Fwww.taxworld.org%2FHistory%2FTaxHistory.htm&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-58"><span class="mw-cite-backlink"><b><a href="#cite_ref-58">^</a></b></span> <span class="reference-text">Joseph A. Hill, "The Civil War Income Tax,"  <i>Quarterly Journal of Economics</i> Vol. 8, No. 4 (Jul., 1894), pp. 416–452 <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1885003">in JSTOR</a>; <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1885007">appendix in JSTOR</a></span>
</li>
<li id="cite_note-59"><span class="mw-cite-backlink"><b><a href="#cite_ref-59">^</a></b></span> <span class="reference-text">Weisman (2002), pp. 30–35.</span>
</li>
<li id="cite_note-60"><span class="mw-cite-backlink"><b><a href="#cite_ref-60">^</a></b></span> <span class="reference-text">Weisman (2002), pp. 40–42.</span>
</li>
<li id="cite_note-pollack1-61"><span class="mw-cite-backlink"><b><a href="#cite_ref-pollack1_61-0">^</a></b></span> <span class="reference-text"><cite class="citation journal">Pollack, Sheldon D. (2014). <a rel="nofollow" class="external text" href="https://udel.edu/~pollack/Downloaded%20SDP%20articles,%20etc/academic%20articles/The%20First%20National%20Income%20Tax%2012-18-2013.pdf">"The First National Income Tax, 1861–1872"</a> <span class="cs1-format">(PDF)</span>. <i>Tax Lawyer</i>. <b>67</b> (2).</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Tax+Lawyer&rft.atitle=The+First+National+Income+Tax%2C+1861%E2%80%931872&rft.volume=67&rft.issue=2&rft.date=2014&rft.aulast=Pollack&rft.aufirst=Sheldon+D.&rft_id=https%3A%2F%2Fudel.edu%2F~pollack%2FDownloaded%2520SDP%2520articles%2C%2520etc%2Facademic%2520articles%2FThe%2520First%2520National%2520Income%2520Tax%252012-18-2013.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-62"><span class="mw-cite-backlink"><b><a href="#cite_ref-62">^</a></b></span> <span class="reference-text">Weisman (2002), pp. 99–101.</span>
</li>
<li id="cite_note-63"><span class="mw-cite-backlink"><b><a href="#cite_ref-63">^</a></b></span> <span class="reference-text">Charles F. Dunbar, "The New Income Tax," <i>Quarterly Journal of Economics,</i> Vol. 9, No. 1 (Oct., 1894), pp. 26–46 <a rel="nofollow" class="external text" href="https://www.jstor.org/stable/1883633">in JSTOR</a>.</span>
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<li id="cite_note-64"><span class="mw-cite-backlink"><b><a href="#cite_ref-64">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.let.rug.nl/usa/D/1876-1900/reform/pollock.htm">Chief Justice Fuller's opinion, 158 U.S. 601, 634</a>.</span>
</li>
<li id="cite_note-65"><span class="mw-cite-backlink"><b><a href="#cite_ref-65">^</a></b></span> <span class="reference-text"><a href="/wiki/United_States_Government_Printing_Office" class="mw-redirect" title="United States Government Printing Office">United States Government Printing Office</a>, at <a rel="nofollow" class="external text" href="http://www.gpoaccess.gov/constitution/html/conamt.html">Amendments to the Constitution of the United States of America</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20080205125036/http://www.gpoaccess.gov/constitution/html/conamt.html">Archived</a> 2008-02-05 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>; see generally <i>United States v. Thomas</i>, 788 F.2d 1250 (7th Cir. 1986), <i>cert. denied</i>, 107 S.Ct. 187 (1986); <i>Ficalora v. Commissioner</i>, 751 F.2d 85, 85-1 U.S. Tax Cas. (<a href="/wiki/CCH_(company)" title="CCH (company)">CCH</a>) ¶ 9103 (2d Cir. 1984); <i>Sisk v. Commissioner</i>, 791 F.2d 58, 86-1 U.S. Tax Cas. (CCH) ¶ 9433 (6th Cir. 1986); <i>United States v. Sitka</i>, 845 F.2d 43, 88-1 U.S. Tax Cas. (CCH) ¶ 9308 (2d Cir.), <i>cert. denied</i>, 488 U.S. 827 (1988); <i>United States v. Stahl</i>, 792 F.2d 1438, 86-2 U.S. Tax Cas. (CCH) ¶ 9518 (9th Cir. 1986), <i>cert. denied</i>, 107 S. Ct. 888 (1987); <i>Brown v. Commissioner</i>, 53 T.C.M. (CCH) 94, T.C. Memo 1987–78, CCH Dec. 43,696(M) (1987); <i>Lysiak v. Commissioner</i>, 816 F.2d 311, 87-1 U.S. Tax Cas. (CCH) ¶ 9296 (7th Cir. 1987); <i>Miller v. United States</i>, 868 F.2d 236, 89-1 U.S. Tax Cas. (CCH) ¶ 9184 (7th Cir. 1989); also, see generally <a href="/wiki/Boris_Bittker" title="Boris Bittker">Boris I. Bittker</a>, Constitutional Limits on the Taxing Power of the Federal Government, <i>The Tax Lawyer</i>, Fall 1987, Vol. 41, No. 1, p. 3 (<a href="/wiki/American_Bar_Association" title="American Bar Association">American Bar Ass'n</a>).</span>
</li>
<li id="cite_note-66"><span class="mw-cite-backlink"><b><a href="#cite_ref-66">^</a></b></span> <span class="reference-text">Memorandum Opinion, p. 14, Dec. 17, 2007, docket entry 106, <i>United States v. Benson</i>, case no. 1:04-cv-07403, United States District Court for the Northern District of Illinois, Eastern Division.</span>
</li>
<li id="cite_note-67"><span class="mw-cite-backlink"><b><a href="#cite_ref-67">^</a></b></span> <span class="reference-text">Memorandum Opinion, p. 9, Dec. 17, 2007, docket entry 106, <i>United States v. Benson</i>, case no. 1:04-cv-07403, United States District Court for the Northern District of Illinois, Eastern Division.</span>
</li>
<li id="cite_note-348US-68"><span class="mw-cite-backlink">^ <a href="#cite_ref-348US_68-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-348US_68-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-348US_68-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-348US_68-3"><sup><i><b>d</b></i></sup></a></span> <span class="reference-text">348 U.S.</span>
</li>
<li id="cite_note-69"><span class="mw-cite-backlink"><b><a href="#cite_ref-69">^</a></b></span> <span class="reference-text">Opinion on rehearing, July 3, 2007, p. 16, <i>Murphy v. Internal Revenue Service and United States</i>, case no. 05-5139, United States Court of Appeals for the District of Columbia Circuit, 2007-2 U.S. Tax Cas. (CCH) ¶ 50,531 (D.C. Cir. 2007).</span>
</li>
<li id="cite_note-70"><span class="mw-cite-backlink"><b><a href="#cite_ref-70">^</a></b></span> <span class="reference-text"><i>Penn Mutual Indemnity Co. v. Commissioner</i>, 277 F.2d 16, 60-1 U.S. Tax Cas. (CCH) ¶ 9389 (3d Cir. 1960) (footnotes omitted).</span>
</li>
<li id="cite_note-TaxFoundation-71"><span class="mw-cite-backlink"><b><a href="#cite_ref-TaxFoundation_71-0">^</a></b></span> <span class="reference-text"><cite class="citation news"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20130116210911/http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2011-nominal-and-inflation-adjusted-brackets">"U.S. Federal Individual Income Tax Rates History, 1913–2011"</a>. <i>Tax Foundation</i>. September 9, 2011. Archived from <a rel="nofollow" class="external text" href="http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2011-nominal-and-inflation-adjusted-brackets">the original</a> on January 16, 2013<span class="reference-accessdate">. Retrieved <span class="nowrap">June 7,</span> 2012</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Tax+Foundation&rft.atitle=U.S.+Federal+Individual+Income+Tax+Rates+History%2C+1913%E2%80%932011&rft.date=2011-09-09&rft_id=http%3A%2F%2Ftaxfoundation.org%2Farticle%2Fus-federal-individual-income-tax-rates-history-1913-2011-nominal-and-inflation-adjusted-brackets&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-inflation-US-72"><span class="mw-cite-backlink">^ <a href="#cite_ref-inflation-US_72-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-inflation-US_72-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-inflation-US_72-2"><sup><i><b>c</b></i></sup></a> <a href="#cite_ref-inflation-US_72-3"><sup><i><b>d</b></i></sup></a> <a href="#cite_ref-inflation-US_72-4"><sup><i><b>e</b></i></sup></a> <a href="#cite_ref-inflation-US_72-5"><sup><i><b>f</b></i></sup></a> <a href="#cite_ref-inflation-US_72-6"><sup><i><b>g</b></i></sup></a> <a href="#cite_ref-inflation-US_72-7"><sup><i><b>h</b></i></sup></a></span> <span class="reference-text"><cite class="citation web">Federal Reserve Bank of Minneapolis. <a rel="nofollow" class="external text" href="https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1800-">"Consumer Price Index (estimate) 1800–"</a><span class="reference-accessdate">. Retrieved <span class="nowrap">January 1,</span> 2020</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Consumer+Price+Index+%28estimate%29+1800%E2%80%93&rft.au=Federal+Reserve+Bank+of+Minneapolis&rft_id=https%3A%2F%2Fwww.minneapolisfed.org%2Fabout-us%2Fmonetary-policy%2Finflation-calculator%2Fconsumer-price-index-1800-&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-73"><span class="mw-cite-backlink"><b><a href="#cite_ref-73">^</a></b></span> <span class="reference-text"><cite class="citation news"><a rel="nofollow" class="external text" href="https://archive.org/stream/independen79v80newy#page/n77/mode/1up">"Distribution of the Income Tax"</a>. <i>The Independent</i>. July 20, 1914<span class="reference-accessdate">. Retrieved <span class="nowrap">August 23,</span> 2012</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=The+Independent&rft.atitle=Distribution+of+the+Income+Tax&rft.date=1914-07-20&rft_id=https%3A%2F%2Farchive.org%2Fstream%2Findependen79v80newy%23page%2Fn77%2Fmode%2F1up&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-74"><span class="mw-cite-backlink"><b><a href="#cite_ref-74">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://taxhistory.tax.org/www/website.nsf/Web/THM1901?OpenDocument">Tax History Project</a>, under year 1920.</span>
</li>
<li id="cite_note-75"><span class="mw-cite-backlink"><b><a href="#cite_ref-75">^</a></b></span> <span class="reference-text">Page 12 of Instructions for 1952 Form 1040, Internal Revenue Service, U.S. Department of the Treasury; page 12 of Instructions for 1953 Form 1040, Internal Revenue Service, U.S. Department of the Treasury.</span>
</li>
<li id="cite_note-76"><span class="mw-cite-backlink"><b><a href="#cite_ref-76">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.ntu.org/main/page.php?PageID=19">History of Federal Individual Income Bottom and Top Bracket Rates</a>. Retrieved 2010-02-04.</span>
</li>
<li id="cite_note-77"><span class="mw-cite-backlink"><b><a href="#cite_ref-77">^</a></b></span> <span class="reference-text"><cite class="citation book">Guenther, Gary (February 12, 2018). <a rel="nofollow" class="external text" href="https://fas.org/sgp/crs/misc/RL34498.pdf"><i>Individual Income Tax Rates and Other Key Elements of the Federal Individual Income Tax: 1988 to 2017</i></a> <span class="cs1-format">(PDF)</span>. Washington, D.C.: Congressional Research Service<span class="reference-accessdate">. Retrieved <span class="nowrap">February 25,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=Individual+Income+Tax+Rates+and+Other+Key+Elements+of+the+Federal+Individual+Income+Tax%3A+1988+to+2017&rft.place=Washington%2C+D.C.&rft.pub=Congressional+Research+Service&rft.date=2018-02-12&rft.aulast=Guenther&rft.aufirst=Gary&rft_id=https%3A%2F%2Ffas.org%2Fsgp%2Fcrs%2Fmisc%2FRL34498.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-78"><span class="mw-cite-backlink"><b><a href="#cite_ref-78">^</a></b></span> <span class="reference-text">Logan, D. S. (24 October 2011). <a rel="nofollow" class="external text" href="https://taxfoundation.org/summary-latest-federal-individual-income-tax-data-0/">"Summary of latest federal individual income tax data"</a>. Tax Foundation.</span>
</li>
<li id="cite_note-79"><span class="mw-cite-backlink"><b><a href="#cite_ref-79">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://taxfoundation.org/outline-major-tax-law-provisions-2013-under-multiple-scenarios/">"Outline of Major Tax Law Provisions in 2013 under Multiple Scenarios"</a> (12 April 2012). Tax Foundation.</span>
</li>
<li id="cite_note-80"><span class="mw-cite-backlink"><b><a href="#cite_ref-80">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-soi/02inpetr.pdf">Personal Exemptions and Individual Income Tax Rates: 1913–2002</a>, Internal Revenue Service</span>
</li>
<li id="cite_note-81"><span class="mw-cite-backlink"><b><a href="#cite_ref-81">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2011-nominal-and-inflation-adjusted-brackets">U.S. Federal Individual Marginal Income Tax Rates History, 1913–2009</a> <a rel="nofollow" class="external text" href="https://web.archive.org/web/20130116210911/http://taxfoundation.org/article/us-federal-individual-income-tax-rates-history-1913-2011-nominal-and-inflation-adjusted-brackets">Archived</a> 2013-01-16 at the <a href="/wiki/Wayback_Machine" title="Wayback Machine">Wayback Machine</a>, The Tax Foundation.</span>
</li>
<li id="cite_note-82"><span class="mw-cite-backlink"><b><a href="#cite_ref-82">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external free" href="http://data.bls.gov/cgi-bin/cpicalc.pl%7Cpublisher=US">http://data.bls.gov/cgi-bin/cpicalc.pl%7Cpublisher=US</a> Government</span>
</li>
<li id="cite_note-83"><span class="mw-cite-backlink"><b><a href="#cite_ref-83">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.taxfoundation.org/publications/show/151.html">U.S. Federal Individual Income Tax Rates History, 1913–2011 (Nominal and Inflation-Adjusted Brackets)</a><i>Tax Foundation</i>. Accessed: 10 November 2011.</span>
</li>
<li id="cite_note-84"><span class="mw-cite-backlink"><b><a href="#cite_ref-84">^</a></b></span> <span class="reference-text">Samuel A. Donaldson, Federal Income Taxation of Individuals: Cases, Problems and Materials, 4 (2nd Ed. 2007).</span>
</li>
<li id="cite_note-Id-85"><span class="mw-cite-backlink">^ <a href="#cite_ref-Id_85-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Id_85-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><i>Id.</i></span>
</li>
<li id="cite_note-86"><span class="mw-cite-backlink"><b><a href="#cite_ref-86">^</a></b></span> <span class="reference-text">See, <i>e.g.</i>, CCH <i>2013 State Tax Handbook</i>, <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-8080-3227-4" title="Special:BookSources/978-0-8080-3227-4">978-0-8080-3227-4</a>, Fox <i>Income Tax in the USA</i>, appendix, <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-9851823-3-5" title="Special:BookSources/978-0-9851823-3-5">978-0-9851823-3-5</a>, ASIN B00BCSNOGG.</span>
</li>
<li id="cite_note-87"><span class="mw-cite-backlink"><b><a href="#cite_ref-87">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="http://www.gao.gov/products/GAO-06-541">All residents of PR pay federal taxes, with the exception of federal <b>income</b> taxes which only <b>some</b> residents of Puerto Rico must still pay</a>.</span>
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<li id="cite_note-89"><span class="mw-cite-backlink"><b><a href="#cite_ref-89">^</a></b></span> <span class="reference-text"><a href="/wiki/John_Stuart_Mill" title="John Stuart Mill">John Stuart Mill</a>'s argument, reported by Marvin A. Chirelstein, <i>Federal Income Taxation</i>, p. 433 (Foundation Press, 10th Ed., 2005)</span>
</li>
<li id="cite_note-90"><span class="mw-cite-backlink"><b><a href="#cite_ref-90">^</a></b></span> <span class="reference-text">Chirelstein, <i>loc.cit.</i></span>
</li>
<li id="cite_note-91"><span class="mw-cite-backlink"><b><a href="#cite_ref-91">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20120227184024/http://www.cato.org/pubs/journal/cj28n1/cj28n1-4.pdf">"Cato Institute publication"</a> <span class="cs1-format">(PDF)</span>. <i>cato.org</i>. Archived from <a rel="nofollow" class="external text" href="http://www.cato.org/pubs/journal/cj28n1/cj28n1-4.pdf">the original</a> <span class="cs1-format">(PDF)</span> on February 27, 2012<span class="reference-accessdate">. Retrieved <span class="nowrap">August 19,</span> 2018</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=unknown&rft.jtitle=cato.org&rft.atitle=Cato+Institute+publication.&rft_id=http%3A%2F%2Fwww.cato.org%2Fpubs%2Fjournal%2Fcj28n1%2Fcj28n1-4.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-92"><span class="mw-cite-backlink"><b><a href="#cite_ref-92">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.irs.gov/Tax-Professionals/The-Truth-About-Frivolous-Tax-Arguments-Introduction">"The Truth About Frivolous Tax Arguments"</a>. March 4, 2013<span class="reference-accessdate">. Retrieved <span class="nowrap">July 30,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Truth+About+Frivolous+Tax+Arguments&rft.date=2013-03-04&rft_id=https%3A%2F%2Fwww.irs.gov%2FTax-Professionals%2FThe-Truth-About-Frivolous-Tax-Arguments-Introduction&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-CBOInc&Tax2014-93"><span class="mw-cite-backlink">^ <a href="#cite_ref-CBOInc&Tax2014_93-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-CBOInc&Tax2014_93-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="https://www.cbo.gov/publication/49440">"The Distribution of Household Income and Federal Taxes 2011"</a>. Congressional Budget Office, US Government. November 2014.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Distribution+of+Household+Income+and+Federal+Taxes+2011&rft.pub=Congressional+Budget+Office%2C+US+Government&rft.date=2014-11&rft_id=https%3A%2F%2Fwww.cbo.gov%2Fpublication%2F49440&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-kiplinger-94"><span class="mw-cite-backlink">^ <a href="#cite_ref-kiplinger_94-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-kiplinger_94-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-kiplinger_94-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><cite class="citation web">McCormally, Kevin (December 18, 2010). <a rel="nofollow" class="external text" href="http://www.kiplinger.com/features/archives/how-your-income-stacks-up.html">"Where Do You Rank as a Taxpayer?"</a>. Kiplinger<span class="reference-accessdate">. Retrieved <span class="nowrap">June 18,</span> 2010</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Where+Do+You+Rank+as+a+Taxpayer%3F&rft.pub=Kiplinger&rft.date=2010-12-18&rft.aulast=McCormally&rft.aufirst=Kevin&rft_id=http%3A%2F%2Fwww.kiplinger.com%2Ffeatures%2Farchives%2Fhow-your-income-stacks-up.html&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-95"><span class="mw-cite-backlink"><b><a href="#cite_ref-95">^</a></b></span> <span class="reference-text"><cite class="citation web">Reynolds, Alan (May 3, 2011). <a rel="nofollow" class="external text" href="http://www.cato.org/publications/congressional-testimony/increasing-progressivity-us-taxes-shrinking-tax-base">"The Increasing Progressivity of U.S. Taxes: And the Shrinking Tax Base"</a>. Cato Institute<span class="reference-accessdate">. Retrieved <span class="nowrap">January 18,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Increasing+Progressivity+of+U.S.+Taxes%3A+And+the+Shrinking+Tax+Base&rft.pub=Cato+Institute&rft.date=2011-05-03&rft.aulast=Reynolds&rft.aufirst=Alan&rft_id=http%3A%2F%2Fwww.cato.org%2Fpublications%2Fcongressional-testimony%2Fincreasing-progressivity-us-taxes-shrinking-tax-base&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
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<li id="cite_note-96"><span class="mw-cite-backlink"><b><a href="#cite_ref-96">^</a></b></span> <span class="reference-text"><cite class="citation web">Bluey, Rob (February 19, 2012). <a rel="nofollow" class="external text" href="http://blog.heritage.org/2012/02/19/chart-of-the-week-nearly-half-of-all-americans-dont-pay-income-taxes/">"Chart of the Week: Nearly Half of All Americans Don't Pay Income Taxes"</a>. Heritage Foundation<span class="reference-accessdate">. Retrieved <span class="nowrap">October 28,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Chart+of+the+Week%3A+Nearly+Half+of+All+Americans+Don%27t+Pay+Income+Taxes&rft.pub=Heritage+Foundation&rft.date=2012-02-19&rft.aulast=Bluey&rft.aufirst=Rob&rft_id=http%3A%2F%2Fblog.heritage.org%2F2012%2F02%2F19%2Fchart-of-the-week-nearly-half-of-all-americans-dont-pay-income-taxes%2F&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-97"><span class="mw-cite-backlink"><b><a href="#cite_ref-97">^</a></b></span> <span class="reference-text"><cite class="citation web">Will Freeland; Scott A. Hodge (July 20, 2012). <a rel="nofollow" class="external text" href="http://taxfoundation.org/article/tax-equity-and-growth-nonpayers">"Tax Equity and the Growth in Nonpayers"</a>. Tax Foundation<span class="reference-accessdate">. Retrieved <span class="nowrap">October 28,</span> 2013</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=Tax+Equity+and+the+Growth+in+Nonpayers&rft.pub=Tax+Foundation&rft.date=2012-07-20&rft.au=Will+Freeland&rft.au=Scott+A.+Hodge&rft_id=http%3A%2F%2Ftaxfoundation.org%2Farticle%2Ftax-equity-and-growth-nonpayers&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-Saezprog-98"><span class="mw-cite-backlink">^ <a href="#cite_ref-Saezprog_98-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-Saezprog_98-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><cite class="citation journal">Thomas Piketty; Emmanuel Saez (2007). <a rel="nofollow" class="external text" href="http://elsa.berkeley.edu/%7Esaez/piketty-saezJEP07taxprog.pdf">"How Progressive is the U.S. Federal Tax System? A Historical and International Perspective"</a> <span class="cs1-format">(PDF)</span>. <i>Journal of Economic Perspectives</i>. <b>21</b> (1): 23–24. <a href="/wiki/Digital_object_identifier" title="Digital object identifier">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1257%2Fjep.21.1.3">10.1257/jep.21.1.3</a><span class="reference-accessdate">. Retrieved <span class="nowrap">January 25,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Ajournal&rft.genre=article&rft.jtitle=Journal+of+Economic+Perspectives&rft.atitle=How+Progressive+is+the+U.S.+Federal+Tax+System%3F+A+Historical+and+International+Perspective&rft.volume=21&rft.issue=1&rft.pages=23-24&rft.date=2007&rft_id=info%3Adoi%2F10.1257%2Fjep.21.1.3&rft.au=Thomas+Piketty&rft.au=Emmanuel+Saez&rft_id=http%3A%2F%2Felsa.berkeley.edu%2F%257Esaez%2Fpiketty-saezJEP07taxprog.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-99"><span class="mw-cite-backlink"><b><a href="#cite_ref-99">^</a></b></span> <span class="reference-text"><cite class="citation web">Michael D. Stroup; Keith Hubbard (August 2013). <a rel="nofollow" class="external text" href="http://mercatus.org/sites/default/files/Stroup_TaxProgressivity_v2.pdf">"An improved index and estimation method for assessing tax progressivity"</a> <span class="cs1-format">(PDF)</span>. <a href="/wiki/Mercatus_Center" title="Mercatus Center">Mercatus Center</a>, George Mason University<span class="reference-accessdate">. Retrieved <span class="nowrap">January 18,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=An+improved+index+and+estimation+method+for+assessing+tax+progressivity&rft.pub=Mercatus+Center%2C+George+Mason+University&rft.date=2013-08&rft.au=Michael+D.+Stroup&rft.au=Keith+Hubbard&rft_id=http%3A%2F%2Fmercatus.org%2Fsites%2Fdefault%2Ffiles%2FStroup_TaxProgressivity_v2.pdf&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-100"><span class="mw-cite-backlink"><b><a href="#cite_ref-100">^</a></b></span> <span class="reference-text"><cite class="citation web"><a rel="nofollow" class="external text" href="http://www.cbo.gov/publication/44604">"The Distribution of Household Income and Federal Taxes, 2010"</a>. Congressional Budget Office. December 4, 2013<span class="reference-accessdate">. Retrieved <span class="nowrap">January 21,</span> 2014</span>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=unknown&rft.btitle=The+Distribution+of+Household+Income+and+Federal+Taxes%2C+2010&rft.pub=Congressional+Budget+Office&rft.date=2013-12-04&rft_id=http%3A%2F%2Fwww.cbo.gov%2Fpublication%2F44604&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></span>
</li>
<li id="cite_note-101"><span class="mw-cite-backlink"><b><a href="#cite_ref-101">^</a></b></span> <span class="reference-text"><a rel="nofollow" class="external text" href="https://books.google.com/books?id=3WvmeZ2BbRsC&pg=PA104&lpg=PA104#v=onepage&q=%22taxation%20is%20most%20progressively%20distributed%20in%20the%20United%20States%22">Growing Unequal?: Income Distribution and Poverty in OECD Countries</a>, OECD Publishing, <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-92-64-04418-0" title="Special:BookSources/978-92-64-04418-0">978-92-64-04418-0</a>, 2008, pgs. 103, 104.</span>
</li>
</ol></div></div>
</section><h2 class="section-heading" onclick="javascript:mfTempOpenSection(30)"><div class="mw-ui-icon mw-ui-icon-element indicator mw-ui-icon-small mw-ui-icon-flush-left"></div><span class="mw-headline" id="Further_reading">Further reading</span><span class="mw-editsection"><a href="/w/index.php?title=Income_tax_in_the_United_States&action=edit&section=55" title="Edit section: Further reading" data-section="55" class="mw-ui-icon mw-ui-icon-element mw-ui-icon-minerva-edit-enabled edit-page mw-ui-icon-flush-right">Edit</a></span></h2><section class="mf-section-30 collapsible-block" id="mf-section-30">
<p><b>Government sources</b>:
</p>
<ul><li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p17.pdf">Publication 17</a>, Your Federal Income Tax</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p334.pdf">Publication 334</a>, Tax Guide for Small Business</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p509.pdf">Publication 509</a>, Tax Calendar</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p541.pdf">Publication 541</a>, Partnerships</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p542.pdf">Publication 542</a>, Corporations</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p544.pdf">Publication 544</a>, Sales and Other Dispositions of Assets</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/pub/irs-pdf/p556.pdf">Publication 556</a> Examination of Returns, Appeal Rights, and Claims for Refund</li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/taxtopics/index.html">Tax Topics</a></li>
<li><b><a rel="nofollow" class="external text" href="http://www.irsvideos.gov/">IRS videos on tax topics</a></b></li>
<li>IRS <a rel="nofollow" class="external text" href="https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/State-Links-1">links to state websites</a></li></ul><p><b>Law & regulations</b>:
</p>
<ul><li><a rel="nofollow" class="external text" href="https://www.law.cornell.edu/uscode/html/uscode26/usc_sup_01_26.html">Federal tax law, 26 USC</a></li>
<li><a rel="nofollow" class="external text" href="https://web.archive.org/web/20120119174817/http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?&c=ecfr&tpl=%2Fecfrbrowse%2FTitle26%2F26tab_02.tpl">Code of Federal Regulations, 26 CFR</a></li></ul><p><b>Texts</b>:
</p>
<ul><li>Fox, Stephen C, <i>Income Tax in the USA</i>. 2013 edition <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-9851823-3-5" title="Special:BookSources/978-0-9851823-3-5">978-0-9851823-3-5</a>, <a href="/wiki/Amazon_Standard_Identification_Number" title="Amazon Standard Identification Number">ASIN</a> <a rel="nofollow" class="external text" href="https://www.amazon.com/dp/B00BCSNOGG">B00BCSNOGG</a>.</li>
<li>Hoffman, William H. Jr.; Willis, Eugene; <i>et al.</i>, <i>South-Western Federal Taxation</i>. 2013 edition <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-1-133-18955-8" title="Special:BookSources/978-1-133-18955-8">978-1-133-18955-8</a>, <a href="/wiki/Amazon_Standard_Identification_Number" title="Amazon Standard Identification Number">ASIN</a> <a rel="nofollow" class="external text" href="https://www.amazon.com/dp/B00B6F3AWI">B00B6F3AWI</a>.</li>
<li>Pratt, James W.; Kulsrud, William N.; <i>et al.</i>, <i>Federal Taxation". 2013 edition <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-1-133-49623-6" title="Special:BookSources/978-1-133-49623-6">978-1-133-49623-6</a>.</i></li>
<li>Whittenberg, Gerald; Altus-Buller, Martha; Gill, Stephen,  <i>Income Tax Fundamentals 2010</i>. 2013 edition <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-1-111-97251-6" title="Special:BookSources/978-1-111-97251-6">978-1-111-97251-6</a>, <a href="/wiki/Amazon_Standard_Identification_Number" title="Amazon Standard Identification Number">ASIN</a> <a rel="nofollow" class="external text" href="https://www.amazon.com/dp/B00B6FBDHW">B00B6FBDHW</a>.</li></ul><p><b>Monographs</b>:
</p>
<ul><li><cite class="citation book">Weisman, Steven R. (2002). <a rel="nofollow" class="external text" href="https://archive.org/details/greattaxwars00weis"><i>The Great Tax Wars: Lincoln to Wilson-The Fierce Battles over Money That Transformed the Nation</i></a>. Simon & Schuster. <a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/0-684-85068-0" title="Special:BookSources/0-684-85068-0"><bdi>0-684-85068-0</bdi></a>.</cite><span title="ctx_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Abook&rft.genre=book&rft.btitle=The+Great+Tax+Wars%3A+Lincoln+to+Wilson-The+Fierce+Battles+over+Money+That+Transformed+the+Nation&rft.pub=Simon+%26+Schuster&rft.date=2002&rft.isbn=0-684-85068-0&rft.aulast=Weisman&rft.aufirst=Steven+R.&rft_id=https%3A%2F%2Farchive.org%2Fdetails%2Fgreattaxwars00weis&rfr_id=info%3Asid%2Fen.wikipedia.org%3AIncome+tax+in+the+United+States" class="Z3988"></span><link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"></li>
<li>Thorndike, Joseph J. <i>Their Fair Share: Taxing the Rich in the Age of FDR.</i> Washington, DC: Urban Institute, 2013.</li></ul><p><b>Reference works</b> (annual):
</p>
<ul><li>CCH <i>U.S. Master Tax Guide, 2013</i> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-8080-2980-9" title="Special:BookSources/978-0-8080-2980-9">978-0-8080-2980-9</a></li>
<li>RIA <i>Federal Tax Handbook 2013</i> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-7811-0472-2" title="Special:BookSources/978-0-7811-0472-2">978-0-7811-0472-2</a></li>
<li>Dauchy, E. P., & Balding, C. (2013). Federal Income Tax Revenue Volatility Since 1966. Working Papers w0198, Center for Economic and Financial Research (CEFIR). <i>Available at <a rel="nofollow" class="external text" href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2351376">SSRN 2351376</a></i>.</li></ul><p><b>Consumer publications</b> (annual):
</p>
<ul><li><i>J.K. Lasser's Your Income Tax for 2013</i> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-0-470-44711-6" title="Special:BookSources/978-0-470-44711-6">978-0-470-44711-6</a>, <a href="/wiki/Amazon_Standard_Identification_Number" title="Amazon Standard Identification Number">ASIN</a> <a rel="nofollow" class="external text" href="https://www.amazon.com/dp/B009WU0U2C">B009WU0U2C</a></li>
<li><i>Ernst & Young Tax Guide 2013</i> <link rel="mw-deduplicated-inline-style" href="mw-data:TemplateStyles:r935243608"><a href="/wiki/International_Standard_Book_Number" title="International Standard Book Number">ISBN</a> <a href="/wiki/Special:BookSources/978-1-118-46667-4" title="Special:BookSources/978-1-118-46667-4">978-1-118-46667-4</a>, <a href="/wiki/Amazon_Standard_Identification_Number" title="Amazon Standard Identification Number">ASIN</a> <a rel="nofollow" class="external text" href="https://www.amazon.com/dp/B00A6WOSUK">B00A6WOSUK</a></li></ul></section></div><noscript><img src="//en.wikipedia.org/wiki/Special:CentralAutoLogin/start?type=1x1&mobile=1" alt="" title="" width="1" height="1" style="border: none; position: absolute;" /></noscript></div><div class="printfooter">
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