« There's None So Blind As Those Who Will Not See | Main | NYU and Columbia »

Maybe I'm missing something

TaxProf Blog is commenting on a WSJ story ($$ required) about people who paid no tax in 2001:

The Internal Revenue Service says that of the 2.6 million individual tax returns that reported income of $200,000 or more, there were 4,119 taxpayers who owed zero federal and foreign income taxes for 2001, the latest available year. That was up from 2,320 in 2000 and only 1,562 as recently as 1997. Typically, there is no one explanation for achieving tax-free status. It usually is a combination of factors, such as large amounts of tax-exempt bond interest, medical bills, charitable contributions, casualty losses (such as from a fire or earthquake), business losses and investment losses....

Is it surprising that number would rise between 1997 (when the economy was booming) and 2001 (when it was relatively sedate)? I would have thought most of the effect would come from those in 2001 who made money in that year but were declaring losses from 2000. (I've not looked up the article on Lexis yet, so I don't know if the question is answered therein.)

Questions like this just make me want to take a Tax class next year. Doing my own taxes is confusing enough. I don't know if someone who was carrying over losses from a prior year (say, in an S corporation) would be counted as not having the income in the present year (thus, being under the $200K income limit) or as having an income over $200K but deductions bringing taxable income beneath that.

It's a confusing topic. Me, I'm probably filing an extension anyway...


Um, was this too soon for Bush to have created loopholes for the rich? Seems to me the change is easily explained by a loophole being created somewhere - the numbers involved aren't that big... Meanwhile check out this cartoon

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

NOTICE TO SPAMMERS, COMMENT ROBOTS, TRACKBACK SPAMMERS AND OTHER NON-HUMAN VISITORS: No comment or trackback left via a robot is ever welcome at Three Years of Hell. Your interference imposes significant costs upon me and my legitimate users. The owner, user or affiliate who advertises using non-human visitors and leaves a comment or trackback on this site therefore agrees to the following: (a) they will pay fifty cents (US$0.50) to Anthony Rickey (hereinafter, the "Host") for every spam trackback or comment processed through any blogs hosted on threeyearsofhell.com, morgrave.com or housevirgo.com, irrespective of whether that comment or trackback is actually posted on the publicly-accessible site, such fees to cover Host's costs of hosting and bandwidth, time in tending to your comment or trackback and costs of enforcement; (b) if such comment or trackback is published on the publicly-accessible site, an additional fee of one dollar (US$1.00) per day per URL included in the comment or trackback for every day the comment or trackback remains publicly available, such fee to represent the value of publicity and search-engine placement advantages.

Giving The Devil His Due

And like that... he is gone (8)
Bateleur wrote: I tip my hat to you - not only for ... [more]

Law Firm Technology (5)
Len Cleavelin wrote: I find it extremely difficult to be... [more]

Post Exam Rant (9)
Tony the Pony wrote: Humbug. Allowing computers already... [more]

Symbols, Shame, and A Number of Reasons that Billy Idol is Wrong (11)
Adam wrote: Well, here's a spin on the theory o... [more]

I've Always Wanted to Say This: What Do You Want? (14)
gcr wrote: a nice cozy victorian in west phill... [more]

Choose Stylesheet

What I'm Reading

D.C. Noir

My city. But darker.
A Clockwork Orange

About time I read this...


Projects I've Been Involved With

A Round-the-World Travel Blog: Devil May Care (A new round-the-world travel blog, co-written with my wife)
Parents for Inclusive Education (From my Clinic)

Syndicated from other sites

The Columbia Continuum
Other Blogs by CLS students