As the end of the year approaches, it will soon be time to file taxes again. Whether you are an employee, business owner, or self-employed, most adults in the United States have to file their taxes. Some see tax season as a benefit because they may receive a tax refund, not owe tax, or simply not pay heavy tax. Depending on your work situation, you may be eligible for tax deductions, claiming certain business activities or certain purchases as expenses.
The tax filing process is common among regular consumers, but what about those who earn significant income? There has been a debate about how people should be taxed, particularly whether the rich should be taxed the most or everyone should just be taxed equally.
Who is in the top 1%?
It can be confusing who makes up the highest 1% in the United States and how much they are taxed. Some people rank in the top 1% and don’t even know it.
To be considered a 1% in America, you must have an annual income of at least $ 545,978. Over a million US taxpayers are in the 1%. The average income of a person in the 1% can vary state to state, but because the group includes billionaires, the average income of the 1% Americans is $ 1.697 million.
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Reports show that New York’s 1 percent have some of the highest average incomes – the lowest income for this group is around $ 740,000. Meanwhile, in Mississippi, the lowest income among the 1% was around $ 330,000.