Individual Income Tax Filing: Refundable American Opportunity Credit Used to Offset Income Tax Before Credits
This dataset tracks individual income tax filing: refundable american opportunity credit used to offset income tax before credits over time.
Latest Value
4461567.00
Year-over-Year Change
1.53%
Date Range
1/1/2009 - 1/1/2016
Summary
This economic trend measures the amount of refundable American Opportunity tax credits used to offset individual income taxes in the United States before other credits are applied.
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 Credit is a federal tax credit that helps offset the costs of higher education. This trend tracks the total value of this credit that individuals use to reduce their reported income tax liability prior to applying any other credits or deductions.
Methodology
The data is collected by the Internal Revenue Service from individual income tax returns.
Historical Context
This metric is used by economists and policymakers to understand the impact of education tax credits on personal income and government tax revenue.
Key Facts
- The American Opportunity Credit is worth up to $2,500 per eligible student.
- In 2020, over $13 billion in refundable credits were used to offset individual income taxes.
- The credit is available for the first 4 years of post-secondary education.
FAQs
Q: What does this economic trend measure?
A: This trend measures the total value of refundable American Opportunity tax credits used by individuals to reduce their reported income tax liability before applying any other credits or deductions.
Q: Why is this trend relevant for users or analysts?
A: This metric is important for understanding the impact of education tax credits on personal income and government tax revenue.
Q: How is this data collected or calculated?
A: The data is collected by the Internal Revenue Service from individual income tax returns.
Q: How is this trend used in economic policy?
A: Economists and policymakers use this metric to analyze the effects of education tax credits on personal finances and government finances.
Q: Are there update delays or limitations?
A: This data is released annually with a delay of approximately 1 year.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Refundable American Opportunity Credit Used to Offset Income Tax Before Credits (RFAOCTOITBC), retrieved from FRED.