What's the difference between
and
Enter two words to compare and contrast their definitions, origins, and synonyms to better understand how those words are related.

Carryforward vs Carryback - What's the difference?

carryforward | carryback | see also |

In accounting taxation terms the difference between carryforward and carryback

is that carryforward is an income tax loss or credit not usable in the current year that can be applied to offset income or taxes paid, respectively, in subsequent tax years while carryback is a income tax loss or credit that can be applied to offset previously taxed income or taxes paid, respectively.

carryforward

English

Noun

(en noun)
  • (accounting, taxation) An income tax loss or credit not usable in the current year that can be applied to offset income or taxes paid, respectively, in subsequent tax years.

    • See also

    * carryback * (Net operating loss)

    carryback

    English

    Noun

    (en noun)
  • (accounting, taxation) A income tax loss or credit that can be applied to offset previously taxed income or taxes paid, respectively.
  • * {{quote-news, year=2009, date=March 18, author=Lynnley Browning, title=I.R.S. Plans a Deduction for Madoff Victims, work=New York Times citation
    • , passage=Current theft loss rules typically allow losses to be carried back three years and forward 20 years, but the I.R.S plan will allow carrybacks of as many as five years, generally if the loss is for a small business with gross annual receipts of less than $15 million.}}

    See also

    * carryforward * (Net operating loss)