Sunday, February 7, 2010
Turbo Tax has a feature that compares your return to the US averages (for 2007). I was a bit disconcerted to see the average salary and wage income reported to be $420,000 and the average tax paid reported to be $190,000. This seemed quite high and in fact appears to be wrong. According to this (table 1) the correct values are about $60,000 and $8,000. Apparently Turbo Tax was comparing to the top 5% (or so) of returns, not all returns. So my poverty is only relative.