Business and Personal Finance Dictionary

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• 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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