9999999 = N.I.U. (Not in Universe).

Description

STATETAX reports the numerical state income tax liability of an individual or of a couple filing a joint tax return. Tax provisions vary by state of residence. Some states do not levy income taxes, while others allow individual cities to impose an additional income tax. State tax provisions incorporated in the Census Bureau's tax model were based on the State Tax Handbook.

Beginning in 2005, STATAXAC was added to the data, which indicates the amount of state tax liability, after tax credits are deducted. On the other hand, STATETAX indicates the amount of state tax liability, before tax credits are deducted. The credits include the additional child tax credit and the earned income tax credit.

STATETAX, like other tax-related variables included in the ASEC CPS (ADJGINC, CAPGAIN, CAPLOSS, EITCRED, FEDRETIR, FEDTAX, FICA, FILESTAT, MARGTAX, TAXINC, and household level variable PROPTAX) was not determined by direct questioning of respondents. Rather, values for these variables come from the Census Bureau's tax model, which simulates individual tax returns to produce estimates of federal, state, and payroll taxes. The model incorporates information from non-CPS sources, such as the Internal Revenue Service's Statistics of Income series, the American Housing Survey, and the State Tax Handbook. For more information about the model, see Current Population Reports, Series P60-18RD. The IPUMS-CPS staff welcomes further information from users about the interpretation of this variable or other tax-related variables in the ASEC CPS.

In 2004, STATETAX started reporting negative dollar values.

Amounts for STATETAX are expressed in dollars of the given year, rather than in constant dollars adjusted for inflation. Users can adjust for inflation using Consumer Price Index adjustment factors.

Comparability

Apart from the effects of inflation, the comparability of STATETAX over time may be compromised by changes in the tax laws of individual states, as well as by changes in other components of the Census Bureau's income tax simulation model.

Universe

Flags

Unharmonized Variables

• UH_STTAXBC_A1
• UH_STTAXBC_A2
• UH_ZSTTAX_A1