Components of income and types and amounts of deductions were derived using the 1992 personal income tax study file. Average amounts for taxpayers at selected income levels were used to construct the representative taxpayers. The assumption used in this report is to assign average income sources, adjustments, deductions, and credits to representative taxpayers only when more than half of taxpayers at the given income level have these particular items. These levels were selected to provide a useful spectrum of taxpayers at different income levels. Listed below is a brief overview of the major assumptions used to compute tax for the taxpayers analyzed in this report.
All taxpayers have wage income.
No taxpayers have any federal adjustments. No taxpayer is assumed to have income modifications. Taxpayers below this level do not, and therefore use the standard deduction. Itemizing taxpayers are assumed to have itemized deductions for property tax, mortgage interest, and contributions. The amounts used are the averages at each income level based on 1992 New York income tax returns.