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Income Taxes
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Components of income before provision for income taxes include (amounts in thousands):
Year Ended
December 31,
202420232022
Domestic$90,922 $168,689 182,578 
Foreign— — — 
Income before taxes$90,922 $168,689 $182,578 
The components of the provision for (benefit from) income taxes include (amounts in thousands):
Year Ended
December 31,
202420232022
Current
     Federal$16,264 $35,015 $25,550 
     State8,072 10,721 10,624 
Total current expense24,336 45,736 36,174 
Deferred
     Federal581 (792)8,498 
     State(2,545)(1,494)1,272 
Total deferred (benefit) expense (1,964)(2,286)9,770 
Income tax expense$22,372 $43,450 $45,944 
The difference between income taxes expected at the United States federal statutory income tax rate of 21% and the provision for income taxes is summarized as follows (amounts in thousands):
Year Ended
December 31,
202420232022
Federal statutory income tax rate$19,094 $35,383 $38,341 
State taxes4,497 7,617 9,871 
Federal return-to-provision adjustments (1)
(550)(37)(2,577)
Tax credits(664)(443)— 
Other(5)930 309 
Provision for income taxes$22,372 $43,450 $45,944 
(1) The tax investment amount changed as a result of the LLC’s federal tax filing in 2022, therefore the Company recorded a return-to-provision adjustment of $1.6 million and $1.1 million to additional paid-in capital for the years ended December 31, 2023 and 2022, respectively.
Components of our deferred tax assets and liabilities include (amounts in thousands):
December 31,
20242023
Deferred tax assets
Net operating loss carryforwards$— $17 
FS Arhaus investment in LLC10,419 11,091 
Homeworks investment in LLC10,672 8,019 
Total deferred tax assets21,091 19,127 
Less: valuation allowance— — 
Total deferred tax assets, net of valuation allowance$21,091 $19,127 
Based on available evidence (namely, a three-year cumulative income position), management believes it is more-likely-than-not that the net United States federal and state deferred tax assets will be fully realizable. We have not recorded a valuation allowance against deferred tax assets.
No unrecognized tax benefits have been recognized as of December 31, 2024 and 2023. We recognize accrued interest and penalties related to unrecognized tax benefits within the provision for income taxes in the consolidated statements of operations. There were no amounts of interest and penalties accrued as of December 31, 2024 and 2023.
We file income tax returns in the United States federal and various state and local jurisdictions. The tax years after 2020 remain open to examination by the state taxing jurisdictions in which the Company is subject to tax. As of December 31, 2024, the Company was not under examination by the Internal Revenue Service.