Reply to Drawing the 1040 Line Between the Truly Wealthy and the Regular Middle Class

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[quote=Anonymous]I notice that DCUM often debates who is wealthy or not, middle class or upper middle class or upper class and so on. I am curious to know, when you state your HHI, which line from the 1040 are you reporting?  Are you sharing your line 1 [b]wages, salary and tips[/b]?  Are you stating line 9 [b]total income[/b]? Line 11 adjusted gross income? Or line 15 [b]taxable income[/b]?

It seems to me that the truly wealthy will see a bid bump/difference between wages and total income due to the “capital gains/loss” from line 7 and the  “other income” flowing in on line 8.  The regular middle class will see no substantive difference between line 1 and line 9 because the bulk of their income derives from working a job. The truly wealthy will see a large increase due to income from business activities, trusts, investments, and other passive income sources.

So where do you draw your line, DCUM?  I will go first. On salary alone we would be considered DCUM middle class with $200k, but our total income places us at $500k which is widely considered DCUM upper middle class. I wonder if the tax code helps to reveal why so many of us are confused about our tax status?

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