The direction of current flow through the neutral wire in AC power distribution alternates with each cycle, mirroring the active conductor's current. The magnitude of the current in the neutral wire is determined by Ohm's Law, which states it is proportional to the voltage divided by the load's impedance. In parallel conductors, the active and neutral currents are equal and opposite, resulting in canceled magnetic fields outside the wires. However, within the small region between the conductors, the magnetic fields do not cancel. Understanding these principles is crucial for effective AC power distribution systems.