Individual Income Tax Filing: Tax Credits: Nonrefundable Education Credits

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

Latest Value

8,997,968.00

Year-over-Year Change

25.30%

Date Range

1/1/1999 - 1/1/2016

Summary

The 'Individual Income Tax Filing: Tax Credits: Nonrefundable Education Credits' series measures the value of nonrefundable education tax credits claimed on individual income tax returns. This metric is important for understanding the impact of education-related tax policies on household finances and labor market incentives.

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 economic trend tracks the total dollar value of nonrefundable education tax credits, such as the American Opportunity Tax Credit and Lifetime Learning Credit, that taxpayers claim on their individual income tax returns. These credits are designed to offset the costs of higher education and encourage investment in human capital.

Methodology

The data is collected by the U.S. Internal Revenue Service (IRS) from individual tax return filings.

Historical Context

Policymakers and economists analyze this trend to assess the effectiveness of education tax credits in promoting college access and affordability.

Key Facts

  • The total value of nonrefundable education credits was over $18 billion in 2019.
  • The American Opportunity Tax Credit accounts for the majority of these credits.
  • Eligibility for the credits phases out at higher income levels.

FAQs

Q: What does this economic trend measure?

A: This trend measures the total dollar value of nonrefundable education tax credits, such as the American Opportunity Tax Credit and Lifetime Learning Credit, claimed on individual income tax returns.

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

A: This metric is important for understanding the impact of education-related tax policies on household finances and labor market incentives, as these credits are designed to offset the costs of higher education and encourage investment in human capital.

Q: How is this data collected or calculated?

A: The data is collected by the U.S. Internal Revenue Service (IRS) from individual tax return filings.

Q: How is this trend used in economic policy?

A: Policymakers and economists analyze this trend to assess the effectiveness of education tax credits in promoting college access and affordability.

Q: Are there update delays or limitations?

A: The data is typically published with a delay of several months, as it is dependent on the processing of individual tax returns.

Related Trends

Citation

U.S. Federal Reserve, Individual Income Tax Filing: Tax Credits: Nonrefundable Education Credits (NRDEDC), retrieved from FRED.