Monday, May 3, 2004

The just-released Statistics of Income Bulletin (Winter 2003-04) includes Selected Itemized Deductions, Schedule A, 1990–2001 by Jason Walters and Victor Rehula. Here is the abstract:

Between 1990 and 2001, the number of tax returns claiming itemized deductions increased by 38.5 percent, whereas the total number of tax returns increased by only 14.2 percent. Thus, the share of taxpayers itemizing their deductions increased by 21.3 percent, rising from 28.5 percent of all taxpayers in 1990 to 34.6 percent for 2001.

The total amount of itemized deductions before limitations (in constant dollars) increased at an average annual rate of 3.6 percent between 1990 and 2001. Between 1991 and 1994, the annual changes were relatively small, ranging from a decrease of 1.7 percent to an increase of 0.4 percent. The increases were much larger between 1995 and 2000, ranging from a low of 4.1 percent for 1995 to as high as 8.1 percent for 1999 and 7.6 percent for 2000. For 2001, the increase was 3.5 percent.

Interest paid has been the largest itemized deduction taken by individual taxpayers from 1990 to 2001, with home mortgage interest comprising between 90 percent and 95 percent of the total interest paid. Taxes paid, the second largest itemized deduction, had the largest positive percentage change and the highest frequency of itemized deductions over the period.

For a related Excel table of data, see here. For more statistics on itemized deductions, see here.

Over the coming week, TaxProf Blog will summarize the remaining Featured Articles and Data Releases in the latest SOI and provide links to the full reports and accompanying tables and statistics.