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Interim Income Tax Provision CalculatorEstimated Annual Effective Rate

What does this come to under the current IRS rules?

Year-to-date tax at the estimated annual effective tax rate, less prior quarters, plus discrete items, under ASC 740-270.

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Your figures
Example figuresIllustrative only. Type over them with your own.
Tax provision this quarter
$335,000
Year-to-date tax less prior quarters plus discrete items
Estimated annual effective tax rate
25.00%
Year-to-date tax on ordinary income
$1,125,000
Drawn to one scale
Tax provision this quarter$335,000
Year-to-date tax on ordinary income$1,125,000
Discrete items-$40,000
All results
MeasureResult
Tax provision this quarter$335,000
Estimated annual effective tax rate25.00%
Year-to-date tax on ordinary income$1,125,000
Discrete items-$40,000
How this was worked out
Work shownrecomputed as you type
AETR = estimated annual tax / estimated annual ordinary income
YTD tax = YTD ordinary income x AETR
Quarter = YTD tax - prior quarters + discrete items

Illustrative arithmetic on the figures you enter. Check the result against your firm's methodology before relying on it.

The formulas

  • AETR = estimated annual tax / estimated annual ordinary income
  • YTD tax = YTD ordinary income x AETR
  • Quarter = YTD tax - prior quarters + discrete items

How it works

ASC 740-270 computes tax on year-to-date ordinary income using the best estimate of the annual effective tax rate, then subtracts tax recognized in earlier quarters. Unusual or infrequent items, and items such as excess tax benefits on share-based payments, are discrete and recognized in the quarter they occur.

ASU 2019-12 removed the exception that limited the tax benefit recognized when a year-to-date loss exceeds the anticipated loss for the year.

Illustrative figures only. Check the result against your firm's methodology before relying on it.

Common questions

What if the annual estimate changes?

Apply the new rate to year-to-date income. The catch-up falls in the current quarter.

What if a reliable estimate cannot be made?

ASC 740-270 allows the actual year-to-date effective rate when a reliable estimate of the annual rate cannot be made.

Are tax law changes discrete?

The effect on deferred taxes is recognized in the period of enactment. The effect on current-year tax is reflected in the AETR after enactment.

Sources

Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.

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