What is the meaning of Carry back?

If you have deductions or credits that cannot be taken in the current year, in some instances the IRS allows you to reduce your tax liability for a prior year or years by using it. This is known as a' Carry back'. Individual taxpayers may carry back net operating losses, general business credits and foreign tax credits, but not capital losses. Amounts not carried back may be carried forward to later years.

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APABarry Goldsmith. (2010). carry back. Retrieved September 25, 2026, from http://smartdefine.org/carry_back/definitions/1149466
ChicagoBarry Goldsmith. 2010. "carry back" http://smartdefine.org/carry_back/definitions/1149466 (accessed September 25, 2026).
HarvardBarry Goldsmith 2010, carry back, Smart Define, viewed 25 September, 2026, <http://smartdefine.org/carry_back/definitions/1149466>.
MLABarry Goldsmith. "carry back" 21 October 2010. Web. 25 September 2026. <http://smartdefine.org/carry_back/definitions/1149466>
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