More from: tax cuts and jobs act

Year 2018 Tax Returns Statistics Now Available for public review

This just in from IRS via Tax Statistics <irs@service.govdelivery.com>. Citizens may subscribe to receive these notices on IRS page https://www.irs.gov/newsroom/e-news-subscriptions


  1.  Individual Income Tax Returns, Mid-July Filing Season Statistics, Tax Year 2018


A table providing data from individual income tax returns filed through July 25, 2019, for Tax Year 2018 is now available on SOI’s Tax Stats Web page. These data include selected income items, adjustments, credits, and taxes, by size of adjusted gross income (AGI). The data represent approximately 95 percent of all individual income tax returns that the IRS will process in Calendar Year 2019 and the first tax data filed under the Tax Cuts and Jobs Act. The remaining 5 percent of returns will be primarily from taxpayers who have requested a 6-month extension by filing Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.  Because taxpayers who request an extension generally have more complex finances, on average, those data will represent approximately 87 percent of the total AGI tax liability reported for all individual income tax returns filed during the year.

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  2.  Individual Income Tax Returns with Small Business Income/Losses, Tax Years 2015–2017


New tables for Individual income tax returns that contain small business income or losses for Tax Years 2015–2017 are now available on SOI’s Tax Stats Web page. These tables include income from Schedule C, Profit or Loss from Business, Schedule E, Supplemental Income or Loss, and Schedule F, Profit or Loss from Farming. The information will provide more background and content from the individual business returns, including data on income items, adjustments, credits, and taxes. For 2017, over 42 million individual income tax returns had some small business income and/or losses. Although they represented a little more than a quarter (27.7 percent) of all individual tax returns filed for 2017, these returns accounted for 47.1 percent of adjusted gross income (AGI) and paid 60.4 percent of income tax. For each of the three years of data provided, the largest portion of small business income came from net partnership/S corporation income less losses.


IRS issues notice on state and local tax deductions

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WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service issued a notice today stating that proposed regulations will be issued addressing the deductibility of state and local tax payments for federal income tax purposes. Notice 2018-54 also informs taxpayers that federal law controls the characterization of the payments for federal income tax purposes regardless of the characterization of the payments under state law.

The Tax Cuts and Jobs Act (TCJA) limited the amount of state and local taxes an individual can deduct in a calendar year to $10,000. In response to this new limitation, some state legislatures have adopted or are considering legislative proposals allowing taxpayers to make payments to specified entities in exchange for a tax credit against state and local taxes owed.

The upcoming proposed regulations, to be issued in the near future, will help taxpayers understand the relationship between federal charitable contribution deductions and the new statutory limitation on the deduction of state and local taxes.

Taxpayers should also be aware the U.S. Department of the Treasury and the Internal Revenue Service are continuing to monitor other legislative proposals being considered to ensure that federal law controls the characterization of deductions for federal income tax filings.

The limitation imposed by the TCJA applies to taxable years beginning after Dec. 31, 2017 and before Jan. 1, 2026.

Updates on the implementation of the TCJA can be found on the Tax Reform page of IRS.gov.