Millionaire Tax Returns Rebound Some from 2009 Low

There were roughly 268,000 tax returns reporting more than $1 million in adjusted gross income in 2010, a slight increase of 13 percent above the 2009 level, according to an analysis of the latest data from the Internal Revenue Service for 2010.
But the analysis by the Tax Foundation points out that 2009 saw the fewest number of millionaire returns since 2004 – another byproduct of the financial crisis.
There were 40 percent fewer millionaire tax returns filed in 2009 than were filed in the peak year of 2007, when 392,220 such returns were filed.
The Tax Foundation said their analysis debunks the monolithic profile of millionaires in the current political discourse.
In fact, Americans rarely report million-dollar incomes consistently year after year because many of them become “millionaires” as the result of a one-time event, such as the sale of a business or stock, the Foundation said in a blog post.
The study also broke down the typical millionaire, at least as of the most recent IRS data for 2010.
“When we look beyond these sterile financial statistics, we learn that these taxpayers are typically married (and most of them are two-earner couples), they are highly educated, many are business owners, and nearly half are over the age of 55,” the Foundation concluded.
Read more about millionaire tax returns from the Tax Foundation.

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