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Who’s in the top 1 percent of earners?

October 24, 2011

Yes, "how much do you make?" is a rude question. See, mom, I did pay some attention when you tried to instill some manners in me!

But with the Occupy Wall Street protesters focusing on income disparity, it's a question many of us are asking.

More specifically, we want to know what we have to do to make it into the elite 1 percent category.

It depends upon whose data you use.

My story today on Bankrate.com examines various calculations to arrive at America's top earnings level.

But it you want to go by the Internal Revenue Service's figures, and being a tax geek that's what I did, then an adjusted gross income in 2009 of $343,927 or more put you among the top earners.

Is just under $350,000 a year enough for you to consider yourself rich?

Again, it depends, this time on where you live and just how long your "when I win the lottery" wish list is!

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
  • As a numbers guy I’m always curious how these things break out. The implication here is that it’s just the top 1% that are considered rich. Where Obama tends to stay with the $250K/yr number, which I believe is about the top 2%.
    One point of confusion. The Bankrate article cites “Roughly 44 percent of New York City residents made the top 1 percent in 2007.” With 8M people, I’d assume half are kids (less?) so even 1M earners? If there are only 1.4M in this top 1% (also from article) I’m not sure how this reconciles. Do that many high earners flock to NYC?
    As far as whether $350K can be spent without a lavish life, I really can see it. Pull out taxes (Federal alone $93K) $50K to retirement savings, a chunk to mortgage and property tax, and the number whittle down fast, especially in the cities you mentioned.

  • that pulled highlight was from the study that actually said (in the story proper) 44% of households. Assuming more than 1/household, you get a larger number.

  • Wonderful post, i appreciate reading things that are informative from fellow practitioners.

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