Definition

A tax loss or credit that can be used to reduce the amount of income or taxes from a previous year.

Example

The company was able to use a carryback to reduce its tax liability from last year.

Conversation

I just learned about the concept of a carryback for taxes.

Really? How does that work exactly?

It allows you to offset past income with current losses.

That sounds useful, especially if you had a tough financial year.

Synonyms & Antonyms

Root Explanation

Carryback → It is formed from "carry" (from Old English "carian", meaning to transport or bear) and "back" (meaning to return to a previous position). The word "carryback" refers to the act of transporting something back to a previous place or time.

Memory Tip

Think of 'transporting' something ('carry') 'back' to where it was before — that's what carryback means.

Visually Confused Words