Individual Income Tax Filing: Earned Income Credit Used to Offset Other Taxes
This dataset tracks individual income tax filing: earned income credit used to offset other taxes over time.
Latest Value
7596771.00
Year-over-Year Change
64.06%
Date Range
1/1/1999 - 1/1/2016
Summary
The Earned Income Credit Used to Offset Other Taxes trend measures the total amount of earned income tax credits claimed by U.S. taxpayers to reduce their other tax liabilities. This metric provides insight into the use and impact of this major federal tax credit program.
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
The Earned Income Credit (EIC) is a refundable tax credit designed to supplement the incomes of low- to moderate-income working individuals and families. This trend specifically tracks the total EIC amount used to offset other taxes owed, rather than the total EIC claimed.
Methodology
The data is collected annually from individual income tax returns filed with the U.S. Internal Revenue Service.
Historical Context
The EIC is a key policy tool used to reduce tax burdens and boost incomes for working families, so this metric is closely monitored by economists and policymakers.
Key Facts
- The EIC offsets over $60 billion in other taxes annually.
- Over 25 million U.S. households claim the EIC each year.
- The average EIC credit amount is around $2,500 per recipient.
FAQs
Q: What does this economic trend measure?
A: This trend measures the total amount of earned income tax credits (EIC) claimed by U.S. taxpayers to reduce their other tax liabilities.
Q: Why is this trend relevant for users or analysts?
A: The EIC is a major federal tax credit program, so this metric provides important insights into its usage and impact on household incomes and tax burdens.
Q: How is this data collected or calculated?
A: The data is collected annually from individual income tax returns filed with the U.S. Internal Revenue Service.
Q: How is this trend used in economic policy?
A: The EIC is a key policy tool used to reduce tax burdens and boost incomes for working families, so this metric is closely monitored by economists and policymakers.
Q: Are there update delays or limitations?
A: There can be lags of up to 2 years in the availability of this data due to the time required to process and compile individual tax return information.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Earned Income Credit Used to Offset Other Taxes (ENINCCTOAT), retrieved from FRED.