Individual Income Tax Filing: Earned Income Credit Used to Offset Income Tax Before Credits
This dataset tracks individual income tax filing: earned income credit used to offset income tax before credits over time.
Latest Value
4437175.00
Year-over-Year Change
49.14%
Date Range
1/1/1999 - 1/1/2016
Summary
This economic trend measures the amount of Earned Income Credit used to offset individual income tax before credits. It provides insight into the impact of this key tax credit on personal income and tax burdens.
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 federal income tax credit for low- to moderate-income working individuals and families. This series tracks the total amount of EIC used to reduce individual income tax liability prior to applying other tax credits.
Methodology
The data is collected and calculated by the U.S. Internal Revenue Service from individual income tax returns.
Historical Context
The EIC trend is closely monitored by policymakers and economists to assess the effectiveness of this tax credit in supporting low-income workers and families.
Key Facts
- The EIC can reduce individual income tax liability by thousands of dollars.
- In 2021, over $65 billion in EIC was used to offset individual income taxes.
- The EIC helps lift millions of families out of poverty each year.
FAQs
Q: What does this economic trend measure?
A: This trend measures the total amount of Earned Income Credit (EIC) used by individuals to offset their income tax liability before applying other tax credits.
Q: Why is this trend relevant for users or analysts?
A: The EIC trend provides insight into the impact of this key tax credit on personal income and tax burdens, which is closely monitored by policymakers and economists.
Q: How is this data collected or calculated?
A: The data is collected and calculated by the U.S. Internal Revenue Service from individual income tax returns.
Q: How is this trend used in economic policy?
A: The EIC trend is used by policymakers and economists to assess the effectiveness of this tax credit in supporting low-income workers and families.
Q: Are there update delays or limitations?
A: There may be some delay in the availability of the most recent data, as it is based on individual income tax returns.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Earned Income Credit Used to Offset Income Tax Before Credits (ENINCCTOIN), retrieved from FRED.