National Tax Credits

The system tracks the impact of tax credits for the Total Tax Credits, including the following categories:

  • Total Tax Credit Current Year, including the Foreign Tax Credit - Current Year
  • Total Tax Credits Carryforward
    • Foreign Tax Credit
    • General Business Credit
    • Jobs Credit

Note:

If Tax Losses/Credits accounts are not available, the Tax Losses and Tax Credits forms will not be displayed.

If you are deferring a credit to a future period, you must enter the data on the Tax Credits form. After Consolidation, the deferred amount is moved to the Temporary Differences form, under the Other Adjustment - Automated - Deferred Only column. The system tracks Tax Credit carryforwards in the Temporary Difference rollforward.

To defer a credit to a future period:

  1. From the Home page, click Tax Provision National, and then Package.

  2. On the Tax Credits form, under the Created Losses/Credits column for the Current Year, enter the value of the deferred credit . This value is not populated from the Current Provision report.
    Tax Credits National form
  3. On the Tax Credits form, enter the values in the following columns:
    • Year of Expiration
    • Created Losses/Credits
    • Other Adjustments

    Note:

    Based on the selected year in the POV, the actual Financial year is displayed under Year of Origination, such as FY19.
  4. Click Save.
  5. Under Actions, select Consolidate.

    The sum of the following columns are displayed in the Temporary Differences form, under Other Adjustments - Automated (Deferred Only) for the corresponding tax credit account:

    • Created Losses/Credits
    • Other Adjustments
    • Expiration

    You can see details on the Temporary Differences form.

    See Entering National Temporary Differences.