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Activity Number:
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37
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Type:
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Topic Contributed
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Date/Time:
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Sunday, August 11, 2002 : 4:00 PM to 5:50 PM
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Sponsor:
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Section on Government Statistics*
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| Abstract - #301060 |
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Title:
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Credit Carryforward Utilization: The Adoption Tax Credit
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Author(s):
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Warren Hrung*+
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Affiliation(s):
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U.S. Department of Treasury
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Address:
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Rm 4021-B, Main Treasury, Washington, D.C, District of Columbia, 20220, USA
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Keywords:
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Carryforward Credit ; Adoption ; Tax Panel Data
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Abstract:
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This paper will focus on the carryforward feature of the adoption credit, whereby unused credits due to lack of tax liability can be applied to future tax years. I will investigate claims of 1997 adoption carryforward credits in 1998 and 1999. Using a special Internal Revenue Service (IRS) extract of all tax returns claiming the adoption credit for the 1997-1999 tax years, the raw cross-sectional data suggest that almost all carryforward credits are fully utilized after two years. However, a closer examination of the data show that total claims of 1997 carryforward credits in 1999 are likely to be over-stated. I find that the raw data need to be modified in two major ways. First, the aggregate 1999 data are overstated. Second, the amount of carryforward to future years found in the raw 1997 data is understated. After utilizing the panel aspect of the data to adjust the calculations, I find that around half of 1997 carryforward credits are claimed after two years.
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- The address information is for the authors that have a + after their name.
- Authors who are presenting talks have a * after their name.
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