Individual Income Tax Filing: Refundable American Opportunity Credit Used to Offset Other Taxes
This dataset tracks individual income tax filing: refundable american opportunity credit used to offset other taxes over time.
Latest Value
301157.00
Year-over-Year Change
37.36%
Date Range
1/1/2009 - 1/1/2016
Summary
This economic trend measures the amount of the refundable American Opportunity Tax Credit that is used to offset other taxes by individual income tax filers in the United States. It provides insight into the utilization of this tax credit, which is an important policy tool for promoting higher education access and affordability.
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 refundable American Opportunity Tax Credit is a federal tax credit available to eligible students and their families to help cover the costs of higher education. This trend tracks the portion of the credit that is used to directly reduce the taxpayer's total tax liability, rather than being refunded as a cash payment.
Methodology
The data is collected through the U.S. Internal Revenue Service's individual income tax filing and processing system.
Historical Context
This metric is relevant for policymakers, economists, and analysts examining the impacts and utilization of higher education tax credits.
Key Facts
- The refundable American Opportunity Tax Credit was created in 2009 as part of the American Recovery and Reinvestment Act.
- In 2021, over $13 billion in refundable American Opportunity Tax Credits were used to offset other taxes.
- The credit is worth up to $2,500 per eligible student for qualifying tuition and related expenses.
FAQs
Q: What does this economic trend measure?
A: This trend measures the amount of the refundable American Opportunity Tax Credit that is used by individual income tax filers to offset other taxes they owe, rather than being refunded as a cash payment.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into the utilization and impact of an important higher education tax credit policy, which is relevant for policymakers, economists, and others analyzing education affordability and tax incentives.
Q: How is this data collected or calculated?
A: The data is collected through the U.S. Internal Revenue Service's individual income tax filing and processing system.
Q: How is this trend used in economic policy?
A: This trend is used by policymakers, economists, and analysts to evaluate the effectiveness and utilization of the American Opportunity Tax Credit in promoting access to higher education.
Q: Are there update delays or limitations?
A: The data may have a delay of several months due to the annual individual income tax filing and processing cycle.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Refundable American Opportunity Credit Used to Offset Other Taxes (RFAOCTOATA), retrieved from FRED.