FINANCE JOBS IN COLORADO: Here’s how much money you need to make to be in Colorado’s top 1%
(NEXSTAR) – Have you ever wondered how close you came to being among the wealthiest in your community? New analysis from SmartAsset shows how hard it takes to be in the top 1% in each of the 50 states.
Using tax data from the IRS, the site was able to determine the minimum income required to be among the highest earners in each state. These figures were then adjusted to 2021 dollars using the Consumer Price Index for Urban and Clerical Workers (CPI-W) from the Bureau of Labor Statistics.
States were ranked based on the adjusted gross income of those in the top 1%. Adjusted gross income, or AGI, is your gross income minus adjustments to income, according to the IRS. Gross income includes wages, capital gains, retirement distribution and any other income. Adjustments can include student loan interest, child support payments, or contributions to a retirement account.
Your AGI is used to determine the credits and deductibles you are entitled to when filing your taxes.
In its analysis, SmartAsset found that an American family needs a gross income of $597,815 to fall into the top 1% nationally. In the United States, those in the top 1% earn twice as much as those in the top 5%. A gross income of $240,712 is enough to place you in the top 5%.
The benchmark to be considered among the top 1% varies by state. In Illinois, for example, you would need an income of at least $627,000.
Here are the five states with the highest adjusted gross incomes to consider among the top 1%:
- Connecticut: $896,490
- Massachusetts: $810,256
- New York: $777,126
- New Jersey: $760,462
- California: $745,314
Technically, Washington, DC, which is not a state, has the highest AGI to be considered one of the top earners at $918,000.
Alternatively, here are the five states with the lowest AGIs for the top 1%:
- West Virginia: $350,212
- Mississippi: $361,462
- New Mexico: $384,427
- Arkansas: $411,633
- Kentucky: $412,836
Aren’t you landing in the top 1% in your state? You may still be considered “wealthy” in your community. Go Banking Rates recently published an analysis showing how rich you should be considered in 50 US cities.
In Boston, for example, the lowest income required to be considered “rich” is $159,024. In Albuquerque, New Mexico, an income of $106,866 makes you rich.
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