99999999 = N.I.U. (Not in Universe).

Description

FEDTAXAC indicates the amount of federal tax liability, after tax credits are deducted. The credits include the additional child tax credit and the earned income tax credit. For more information about these credits, see the Internal Revenue Service website. FEDTAX indicates the amount of federal tax liability, before tax credits are deducted. Amounts are reported in dollars.

Amounts for FEDTAXAC are expressed in dollars of the given year, rather than in constant dollars adjusted for inflation. Users can adjust for inflation using Consumer Price Index adjustment factors.

In 2021 and 2022, the economic impact payments were imputed and affected this variable. For more information, please view this working paper. Additionally, the 2021 expanded child credits were imputed for the 2022 CPS ASEC sample. The 2022 CPS ASEC sample added two new tax variables (UH_CDCCRD_A1 and UH_ADVCTC) and updated the definitions for FEDTAXAC, CTCCRD, and ACTCCRD. For more information, please view this working paper.

Comparability

In 2020, in an attempt to mitigate the economic crisis caused by the COVID-19 pandemic, Congress provided for two rounds of direct payments to individuals. In this year, these Economic Impact Payments are treated as refundable credits for the purpose of calculating FEDTAXAC. For more information on the Economic Impact Payments, see UH_EIPCRD_A1.

Universe

Flags

Unharmonized Variables

• UH_FEDTAXAC_A1
• UH_FEDTAXAC_A2
• UH_FEDTAXAC_A3