Individual income tax returns, 1999 – This Issue at a Glance – Brief Article

Individual income tax returns, 1999 – This Issue at a Glance – Brief Article – Statistical Data Included

David Campbell

Taxpayers filed 127.1 million returns for Tax Year 1999, a 1.8-percent increase over the previous year. For 1999, adjusted gross income (less deficit) (AGI) rose 8.1 percent to almost $5.9 trillion, following a 9.0-percent increase for 1998. Total taxable income increased faster than AGI for 1999, with a percentage increase of 9.4 percent. For 1999, total income tax increased 11.3 percent, resuming a trend of higher growth rates than both AGI and taxable income, which was temporarily broken in 1998 when it increased only 7.8 percent. Total income tax as a percentage of AGI increased to 15.0 percent from 14.6 percent for 1998. Unemployment compensation rose for the first time in 7 years, increasing by 4.3 percent for 1999 to $17.5 billion.

The largest components of AGI, salaries and wages and net capital gain (less losses), increased 6.5 percent and 21.7 percent, respectively. A number of other income items contributed to the substantial growth of AGI: taxable Individual Retirement Arrangement distributions increased 17.6 percent; partnership and S corporation net income (less losses) increased 12.7 percent; and taxable pensions and annuities increased 8.4 percent. Total tax credits increased 19.4 percent to $35.9 billion for 1999. Much of this growth can be attributed to growth in the child tax credit and education credits, which increased 28.1 percent and 41.3 percent, respectively.

COPYRIGHT 2001 U.S. Government Printing Office

COPYRIGHT 2004 Gale Group