How Much Americans Made in 2018 – Numbers Tell Stories Series – Part I

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By AccountingGo Staff

Per the most recent data released from the IRS, there were approximately 153.8 million individual income tax returns filed for year 2018. Of those returns, approximately 58% reported adjusted gross income (AGI) of $50,000 or less, 23% between $50,000 and $100,000, and 19% reported income of $100,000 or more – See the pie chart for more details.

2018 US Income

These numbers reflect a big change compared to 10 years ago when 65% of U.S. returns reported an adjusted gross income of less than $50,000 and only 13% of U.S. returns reported an adjusted gross income of $100,000 or more. Although they haven’t been adjusted for inflation.

When comparing 2018 to 2017, the numbers also show a noticeable increase in income reported to the IRS across all income brackets – See the bar chart. The data shows a drop of more than 4% for those making less than $25,000 per year, probably because of the increase in minimum wage in some jurisdictions. The same data shows an increase of more than 7% for those households making between $100,000 and $500,000, and more than 9% for those making more than $500,000. The big increase in the upper-income households was probably because of the appreciation in value of stocks, real estate and other investment assets.

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