Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table displays the components of our provision for federal income taxes.

	For the Year Ended December 31,
	2018				2017				2016
	(Dollars in millions)
Current income tax benefit (provision)		$	114			$	600			$	(2,014	)
Deferred income tax provision(1)		(4,254		)		(16,584		)		(4,006		)
Provision for federal income taxes		$	(4,140	)		$	(15,984	)		$	(6,020	)

⁽¹⁾ 

Amount excludes the current income tax effect of items recognized directly in “Fannie Mae stockholders’ equity (deficit).”

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The following table displays the difference between the statutory corporate tax rate and our effective tax rate.

	For the Year Ended December 31,
	2018				2017				2016
Statutory corporate tax rate		21.0		%		35.0		%		35.0		%
Equity investments in affordable housing projects		(0.6	)			(1.4	)			(1.9	)
Effect of corporate tax rate change		—				53.6				—
Other		0.2				(0.6	)			(0.3	)
Effective tax rate		20.6		%		86.6		%		32.8		%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The following table displays our deferred tax assets and deferred tax liabilities.

	As of December 31,
	2018			2017
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	9,285		$	10,397
Allowance for loan losses and basis in acquired property, net		2,065			2,286
Debt and derivative instruments		687			1,205
Partnership credits		161			1,695
Partnership and other equity investments		223			311
Other, net		840			1,621
Total deferred tax assets		13,261			17,515
Deferred tax liabilities:
Unrealized gains on AFS securities, net		73			165
Total deferred tax liabilities		73			165
Deferred tax assets, net		$	13,188		$	17,350

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table displays the changes in our unrecognized tax benefits.

	For the Year Ended December 31,
	2018				2017			2016
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$	514			$	—		$	—
Gross increases—tax positions in current year		—				514			—
Gross decreases—tax positions in current year		(98		)		—			—
Unrecognized tax benefits as of December 31(1)		$	416			$	514		$	—

⁽¹⁾  Amount excludes tax credits of $151 million and $220 million as of December 31, 2018 and 2017, respectively.

If these tax positions were to resolve favorably, our effective tax would be reduced in future periods by $205 million. While it is reasonably possible that the amount of the unrecognized tax benefits could increase or decrease during the next twelve months, we believe it is unlikely that they will change by a material amount. We had no unrecognized tax benefits as of December 31, 2016.