Vernoia, Enterline + Brewer, CPA LLC

The IRS Statistics of Income (SOI) Division has released statistics on 2011 Individual Income Tax ZIP Code and County Data, which is broken down by income categories within particular zip codes. The statistics-which are the most recent from the IRS-were based on records of the 2011 Forms 1040, U.S. Individual Income Tax, filed from January 1, 2012 to December 31, 2012. They provide data on selected types on income, total returns claiming itemized deductions and types and amounts of deductions claimed.

Processing systems

Zip code data is one of the factors used by the IRS’s computerized Individual Masterfile (IMF) tax return processing system to select returns for audit. A return might appear suspect if, for example, a taxpayer’s income seems low or itemized deductions too high when compared to the average income and deductions of other households in the same zip code.

Findings

The states with the highest percentage of total tax filers reporting $200,000 or more in adjusted gross income for 2011 include: California (4.31 percent of all filers reported more than $200,000 in AGI), Connecticut (5.89 percent), the District of Columbia (6.13 percent), Illinois (3.64 percent), Maryland (4.74 percent), Massachusetts (5.28 percent), New Jersey (3.47 percent), New York (4.23 percent), Virginia (4.47 percent), and Washington (3.57 percent).

IRS 2011 Individual Income Tax ZIP Code and County Data overlayed on US Census Median Household Income

IRS 2011 Individual Income Tax ZIP Code and County Data overlayed on US Census Median Household Income. Stars represent highest percentage of total tax filers reporting $200K or more in gross adjusted income for 2011 (either by state or by specific zipcode).

Among the zip codes reporting the highest amount of AGI were:

  • California, 90049: $5.0 billion total AGI; with a total 7,447 filers reporting income of $100,000 or more, 95 percent of whom itemized their deductions. Filers with income between $100,000 and $200,000 claimed an average amount of $40,358 in itemized deductions; Filers with income of $200,000 or more itemized an average amount of $203,901 in deductions.
  • Connecticut, 06830: $6.1 billion total AGI; with a total 4,296 filers reporting income of $100,000 or more, 93 percent of whom itemized their deductions. Filers with income between $100,000 and $200,000 claimed an average amount of $35,774 in itemized deductions; Filers with income of $200,000 or more itemized an average amount of $371,812 in deductions.
  • New York, 10021: $10.2 billion total AGI; with a total 10,443 filers reporting income of $100,000 or more, 99 percent of whom itemized their deductions. Filers with income between $100,000 and $200,000 claimed an average amount of $32,833 in itemized deductions; Filers with income of $200,000 or more itemized an average amount of $351,843 in deductions.
  • Other localities. Other notable higher-income zip codes include: Ala. (35242); Calif. (94010); D.C. (20009, 20016); Fla. (33496); Ga. (30327); Ill. (60611); Md. (20817, 20854); Minn. (55347); N.Y. (10011; 10023); Texas (78746, 77024); Wash. (98052); and Va. (22101).

IRS 2011 Individual Income Tax ZIP Code and County Data

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