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.

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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

Cardinal Health’s use of the “carryback” tax break draws attention to what some see as a shortcoming of the $2 trillion U.S. coronavirus bailout known as the Cares Act.

From Washington Post

The Dublin, Ohio-based Cardinal Health said earlier this month it planned to collect a $974 million cash refund because it claimed its opioid-related legal costs as a “net operating loss carryback” — a tax provision Congress included in last year’s coronavirus bailout package as a way to help companies struggling during the pandemic.

From Washington Post

The “carryback” tax break permits any company that lost money in 2018, 2019 or 2020 to apply those losses to previous, more profitable years.

From Washington Post

Some form of this provision, called a “carryback” of net operating losses, has been permitted by the U.S. tax code for over a century to help businesses that face ups and downs to even out their taxes.

From Washington Post