For Tax Year 2006, there were 4,064,883 individual income tax returns that reported adjusted gross income (AGI) of $200,000 or more, and 4,094,953 returns with expanded income of $200,000 or more (compared to AGI, expanded income is a more comprehensive measure of income, and it is based entirely on items available from individual income tax returns). These high-income returns represented 2.937 percent and 2.959 percent, respectively, of all returns for 2006.
In Tax Year 2006, about 335,000 U.S. taxpayers living abroad reported approximately $36.7 billion in foreign-earned income. Nearly $18.4 billion were claimed by U.S. taxpayers as foreign-earned income exclusions on their tax returns. Between Tax Years 2001 and 2006, the inflation-adjusted amount of foreign-earned income exclusion increased by 14.6 percent, while the housing exclusion decreased by 38.7 percent, from approximately $2.2 billion for 2001 to more than $1.3 billion for 2006.
For 2006, 112 U.S. persons, including corporations, partnerships, and other entities, reported receiving almost 2,300 requests to participate in boycotts unsanctioned by the United States. Most of these (91 percent) were requests from Arab League Countries to participate in some form of a boycott against Israel. While the number of U.S. persons receiving requests decreased by only three persons from 2005, the number of requests dropped by nearly 40 percent. About 30 percent of those entities that received requests agreed to participate in a boycott. Less than 3 percent of all entities that filed Form 5713, International Boycott Report, however, reported tax consequences.
For Tax Year 2005, the number of U.S. corporations that claimed the possessions tax credit (102) and the amount of the credit claimed ($0.9 billion) continued declines that began in the 1990s. Most of the U.S. corporations that claimed a possessions tax credit for 2005 did so for operations in Puerto Rico. These 94 corporations claimed more than 98 percent of the total credit amount. In order to qualify as a possessions corporation and claim the possessions tax credit, a corporation must derive 80 percent or more of its gross income from sources in a U.S. possession for a required period and 75 percent of its gross income from the active conduct of a trade or business in a U.S. possession, among other requirements.
The Qualified Zone Academy Bond (QZAB) program was established in 1998 to promote public school rehabilitation and public-private partnership in education in areas with constrained public resources. Total QZAB tax credits claimed by qualified financial institutions increased from $117 million in 2004 to $135 million in 2005. The total QZAB principal underlying these credits was roughly $2.1 billion, or 65 percent of the $3.2 billion in QZAB principal authorized to have been issued through 2005.
For Tax Year 2007, taxpayers filed 143.0 million U.S. individual income tax returns, an increase of 3.3 percent from the 138.4 million returns filed for 2006. Adjusted Gross Income (AGI) increased 6.9 percent to $8.5 trillion. Taxable income increased 6.8 percent to $5.9 trillion. The alternative minimum tax rose 8.6 percent to $20.9 billion. Total income tax rose 6.5 percent to $1.1 trillion, and total tax liability rose 6.4 percent to $1.1 trillion.