Distribution of Education Tax Benefits by Income over Time
The implementation of the American Opportunity Tax Credit in 2009 shifted a large share of the benefits of the education tax credits from filers with incomes between $25,000 and $100,000 to those with higher incomes and a small share to those with lower incomes.
Figure 22A: Distribution of Education Tax Credits by Adjusted Gross Income, 2004, 2009, and 2014
Notes & Sources
- In 2004, 15% of the credits went to filers with incomes below $25,000. None of the credits went to filers with incomes of $100,000 or higher. In 2014, 24% of the credits went to filers with incomes below $25,000 and 24% went to those with incomes of $100,000 or higher.