SLIDE 1 Household Incomes in Tax Data: Using Addresses to Move from Tax Units to Households
Jeff Larrimore†, Jacob Mortenson∗, and David Splinter∗
† U.S. Federal Reserve Board ∗ Joint Committee on Taxation, U.S. Congress
May 2017
Disclaimer: This research embodies work undertaken for the staff of the Joint Committee on Taxation, but as members of both parties and both houses of Congress comprise the Joint Committee on Taxation, this work should not be construed to represent the position of any member of the Committee. The views expressed in this presentation are not necessarily those
- f the U.S. Federal Reserve Board.
SLIDE 2
Sharing Unit Selection Matters
SLIDE 3
Constructing Households from Tax Records
Tax records used:
◮ Population of Form 1040 ◮ Population of information returns
Steps, roughly:
◮ Clean addresses ◮ Aggregate by address, drop households with 11+ members ◮ Income: pre-tax, post-transfer cash income, no cap. gains
Results:
◮ 117.5 million March CPS households in 2010 ◮ 117.4 million tax-based households in 2010
SLIDE 4
Tax Data Household Income Distribution
SLIDE 5
Tax Data Household Income Distribution
SLIDE 6
CPS and Tax Unit Age Distribution
SLIDE 7
CPS, Tax Unit, and Tax Unit + Non-filer Age Distribution
SLIDE 8
Percent of Households with Multiple Tax Units
SLIDE 9
Percentage Receiving the EITC
SLIDE 10
Percentage Receiving the EITC
SLIDE 11
Percent of EITC Benefits
SLIDE 12
Percent of EITC Benefits
SLIDE 13
Average Amount of EITC Benefits
SLIDE 14
Average Amount of EITC Benefits
SLIDE 15
Percentage Receiving the ACTC
SLIDE 16
Percentage Receiving the ACTC
SLIDE 17
Percent of ACTC Benefits
SLIDE 18
Percent of ACTC Benefits
SLIDE 19
Average Amount of ACTC Benefits
SLIDE 20
Average Amount of ACTC Benefits
SLIDE 21
Next Steps
◮ Improve Household Creation: Fuzzy Matching ◮ Estimate Household Tax Progressivity ◮ Other Applications for Household Data
SLIDE 22
Household Size Distribution
Household Size Decennial Census March CPS Tax Households 1 31,205 31,399 37,323 2 38,243 39,487 32,695 3 18,758 18,638 18,072 4 15,625 16,122 15,521 5 7,538 7,367 7,507 6 3,075 2,784 3,601 7 or more 2,272 1,739 2,660 Total 116,716 117,538 117,379
