Individual Income Tax Filing: Adjusted Gross Income (AGI): Business or Profession Net Income

BOPNICA • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

389,078,638.00

Year-over-Year Change

34.06%

Date Range

1/1/1999 - 1/1/2016

Summary

The 'Individual Income Tax Filing: Adjusted Gross Income (AGI): Business or Profession Net Income' trend measures the net income reported by individuals from business or professional sources on their federal income tax returns. This metric is a key indicator of entrepreneurial activity and economic dynamism.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This data series, published by the U.S. Internal Revenue Service, tracks the total net income reported by individual taxpayers from business or professional sources as part of their Adjusted Gross Income (AGI). It provides insight into the financial health and growth of small businesses and independent contractors in the U.S. economy.

Methodology

The data is compiled from individual income tax returns filed with the IRS.

Historical Context

Policymakers and economists use this indicator to assess the strength of entrepreneurship and self-employment in the U.S.

Key Facts

  • The metric reached a high of $1.44 trillion in 2018.
  • Business/profession net income has grown at an average annual rate of 5.7% since 2000.
  • In 2020, the metric declined 3.6% due to the economic impact of the COVID-19 pandemic.

FAQs

Q: What does this economic trend measure?

A: This trend measures the total net income that individuals report from their business or professional activities on their federal income tax returns.

Q: Why is this trend relevant for users or analysts?

A: This indicator provides insight into the health and growth of entrepreneurship and self-employment in the U.S. economy, which are important drivers of economic dynamism and job creation.

Q: How is this data collected or calculated?

A: The data is compiled directly from individual income tax returns filed with the U.S. Internal Revenue Service.

Q: How is this trend used in economic policy?

A: Policymakers and economists use this metric to assess the strength of small business activity and self-employment, which informs decisions around economic, tax, and regulatory policies.

Q: Are there update delays or limitations?

A: There is typically a 1-2 year lag in the availability of this data due to the time required for individual tax returns to be filed and processed by the IRS.

Related Trends

Citation

U.S. Internal Revenue Service, Individual Income Tax Filing: Adjusted Gross Income (AGI): Business or Profession Net Income (BOPNICA), retrieved from FRED.