Individual Income Tax Filing: Tax Credits: Foreign Tax Credit
FTXCTA • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
20,090,001.00
Year-over-Year Change
197.28%
Date Range
1/1/1999 - 1/1/2016
Summary
The 'Individual Income Tax Filing: Tax Credits: Foreign Tax Credit' trend measures the total amount of foreign tax credits claimed by U.S. taxpayers. This metric is crucial for understanding the impact of international tax policy and its influence on the U.S. tax system.
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 foreign tax credit allows U.S. taxpayers to offset their U.S. income tax liability by the amount of income taxes paid to a foreign government. This promotes fairness and prevents double taxation, making it an important consideration for individuals and businesses with overseas operations.
Methodology
The data is collected from individual tax returns filed with the Internal Revenue Service (IRS).
Historical Context
Policymakers and economists closely monitor this trend to assess the effectiveness of tax treaties and the competitiveness of the U.S. international tax regime.
Key Facts
- The foreign tax credit reduces double taxation for U.S. taxpayers.
- Claimed foreign tax credits totaled over $13 billion in 2020.
- The credit helps maintain the global competitiveness of U.S. businesses.
FAQs
Q: What does this economic trend measure?
A: The 'Individual Income Tax Filing: Tax Credits: Foreign Tax Credit' trend measures the total amount of foreign tax credits claimed by U.S. taxpayers on their federal income tax returns.
Q: Why is this trend relevant for users or analysts?
A: This trend is crucial for understanding the impact of international tax policy and its influence on the U.S. tax system, as the foreign tax credit helps prevent double taxation for individuals and businesses with overseas operations.
Q: How is this data collected or calculated?
A: The data is collected from individual tax returns filed with the Internal Revenue Service (IRS).
Q: How is this trend used in economic policy?
A: Policymakers and economists closely monitor this trend to assess the effectiveness of tax treaties and the competitiveness of the U.S. international tax regime.
Q: Are there update delays or limitations?
A: The data is subject to the publication schedule of the Internal Revenue Service, which may result in some update delays.
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Citation
U.S. Federal Reserve, Individual Income Tax Filing: Tax Credits: Foreign Tax Credit (FTXCTA), retrieved from FRED.