Carryback

Carryback means:
a process by which the deductions or credits of one taxable year that cannot be used to reduce tax liability in that year are applied against a tax liability in an earlier year or years. Former IRC (check if this IRC provision is current here) §1212.

See also other Tax Terms and Definitions in U.S.A.

carryover.

CARRYBACK – See: Carryover.

Description and Definition of Carryback

Applying a deduction or credit from the current tax year to a prior tax year. A business net operating loss, general business credit, and foreign tax credit may be carried back. A capital loss may not be carried back. Amounts not carried back may be carried forward to later years.

Resources

See Also

Further Reading

• Carryback in the West's Tax Law Dictionary
• Carryback in “A Dictionary of Taxation”