Individual Income Tax Filing: Earned Income Credit

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

Latest Value

66,723,338.00

Year-over-Year Change

66.71%

Date Range

1/1/1999 - 1/1/2016

Summary

The Earned Income Credit (EIC) is a key tax credit for low-to-moderate income working individuals and families in the United States. It provides a substantial financial boost that supplements earnings and promotes work.

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 EIC is a refundable federal tax credit that offsets the burden of Social Security and Medicare taxes for eligible taxpayers. It is a major anti-poverty tool that increases the take-home pay of millions of working Americans each year.

Methodology

The EIC data is calculated and published annually by the U.S. Internal Revenue Service based on individual income tax return filings.

Historical Context

The EIC is an important policy instrument used by governments to support low-income workers and stimulate economic activity.

Key Facts

  • The EIC lifted 5.6 million people out of poverty in 2019.
  • Eligible taxpayers can receive up to $6,660 through the EIC.
  • The EIC has been expanded several times since its creation in 1975.

FAQs

Q: What does this economic trend measure?

A: The Earned Income Credit (EIC) measures the total dollar amount of federal tax credits claimed by eligible low-to-moderate income individuals and families on their income tax returns.

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

A: The EIC is a key anti-poverty tool that boosts the incomes of millions of working Americans, making it an important indicator for economists, policymakers, and analysts studying income inequality and the effectiveness of tax policy.

Q: How is this data collected or calculated?

A: The EIC data is collected and published annually by the U.S. Internal Revenue Service based on individual income tax return filings.

Q: How is this trend used in economic policy?

A: The EIC is a crucial policy instrument used by governments to provide financial assistance to low-income workers, supplement earnings, and stimulate economic activity.

Q: Are there update delays or limitations?

A: The EIC data is published annually with a delay, as it is dependent on the completion of individual income tax filings for the relevant tax year.

Related Trends

Citation

U.S. Internal Revenue Service, Individual Income Tax Filing: Earned Income Credit (ENINCCTA), retrieved from FRED.