1. The application of a loss or credit from one tax year to an earlier tax year to reduce tax liability in that prior year.
Usage: tax/accounting term; plural form of carryback

Examples

• The company used tax carrybacks to recover taxes paid in previous years.
• Net operating loss carrybacks allow businesses to offset prior-year income.
• The accountant filed for carrybacks to reduce the client's overall tax burden.
• Carrybacks are limited to a specific number of years under current tax law.
• The firm's capital loss carrybacks provided significant tax relief.