2020 has been a tumultuous year for many Americans, with the global pandemic causing financial hardship and job loss for millions. However, despite the economic downturn, there are still many Americans who make over $400,000 a year. According to the Internal Revenue Service (IRS), a $400,000 or more annual household income represents America’s top 1.8% income-earners.
Per IRS Publication 6292, there were 154 million tax returns filed in 2019, thus approximately 2.8 million people earn over $400,000. That number is likely to have decreased in 2020 due to the pandemic, but there are still a significant number of Americans who make over $400,000 a year.
So who are these people? The majority of those making over $400,000 a year are business owners, executives, and professionals. Many of them are self-employed entrepreneurs, while others are employed by large companies and organizations.
Those making over $400,000 a year are also more likely to be college-educated and have higher levels of education. They tend to be in the higher-paying industries such as finance, technology, and healthcare.
It is important to note that while many of those making over $400,000 a year are wealthy, not all of them are. Many of them are simply making a good living and are able to save and invest their money wisely.
It is also important to remember that while there are many Americans making over $400,000 a year, the majority of Americans make far less. According to the US Census Bureau, the median household income in 2019 was $68,703. This means that the majority of Americans make less than half of what the top 1.8% of income-earners make.
Overall, it is clear that while there are many Americans making over $400,000 a year, they are still a small minority. The majority of Americans make far less, and it is important to remember that when considering the economic state of the country. Aug 30, 2022.