carryback

American  

[kar-ee-bak] / ˈkær iˌbæk /

noun

1. (in U.S. income-tax law) a special provision allowing part of a net loss or of an unused credit in a given year to be apportioned over one or two preceding years, chiefly in order to ease the tax burden.

---

Etymology

Origin of carryback

First recorded in 1940–45; noun use of verb phrase carry back

Example Sentences

This creates a greater need for loss carryforward and carryback rules, which allow firms with unsteady profits to offset income from profitable years against the losses of unprofitable years.

From Slate • Nov. 15, 2021

"Because you are further into the current year without having filed the prior year's tax returns, you will have a better idea of whether you should carryback a net operating loss."

From US News • Mar. 8, 2016

One of the biggest windfalls could come from a proposed change in the so-called carryback rule, which would fatten the tax rebate companies get when they have losses.

From Time Magazine Archive

"I think the carryback extension is a good idea," says Mark Silverman, a prominent tax lawyer at Steptoe & Johnson.

From Time Magazine Archive

But Convair, strikebound for some three months during the year, reported a deficit of $1.8 million for the first nine months after applying a carryback tax credit of $4 million.

From Time Magazine Archive