INCOME TAXES

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense (benefit) consists of the following:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Current:
Federal	$	(6,694)	$	(7,877)	$	4,119	$	(7,877)
State and local	(1,348)		9		868		58
Total current income tax expense (benefit)	(8,042)		(7,868)		4,987		(7,819)
Deferred:
Federal	5,843		20,304		77,152		(107,221)
State and local	1,122		4,973		15,043		(34,419)
Total deferred income tax expense (benefit)	6,965		25,277		92,195		(141,640)
Total income tax expense (benefit)	$	(1,077)	$	17,409	$	97,182	$	(149,459)

New Residential intends to qualify as a REIT for each of its tax years through December 31, 2021. A REIT is generally not subject to U.S. federal corporate income tax on that portion of its income that is distributed to stockholders if it distributes at least 90% of its REIT taxable income to its stockholders by prescribed dates and complies with various other requirements.

New Residential operates various business segments, including servicing, origination, and MSR related investments, through taxable REIT subsidiaries (“TRSs”) that are subject to regular corporate income taxes, which have been provided for in the provision for income taxes, as applicable. Refer to Note 3 for further details.

As of June 30, 2021, New Residential recorded a net deferred tax liability of $100.1 million primarily related to MSRs.