noun
- a tax deduction or credit from one year that is applied to reduce taxes owed in a previous year
Usage: finance; accounting
Examples
- The company used a loss carryback to recover taxes paid in the prior year.
- A net operating loss carryback allows businesses to claim refunds for earlier tax periods.
- The tax code permits a two-year carryback for certain deductions.
- She consulted her accountant about whether a carryback would be more beneficial than a carryforward.
- The carryback provision helped the firm reduce its overall tax liability.