Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

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

	For the Year Ended December 31,
	2019				2018				2017
	(Dollars in millions)
Current income tax benefit (provision)		$	(2,089	)		$	114			$	600
Deferred income tax provision(1)		(1,328		)		(4,254		)		(16,584		)
Provision for federal income taxes		$	(3,417	)		$	(4,140	)		$	(15,984	)

⁽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

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

	For the Year Ended December 31,
	2019				2018				2017
Statutory corporate tax rate		21.0		%		21.0		%		35.0		%
Equity investments in affordable housing projects		(0.2	)			(0.6	)			(1.4	)
Effect of corporate tax rate change		—				—				53.6
Change in unrecognized tax benefits		(1.2	)			—				—
Other		(0.2	)			0.2				(0.6	)
Effective tax rate		19.4		%		20.6		%		86.6		%

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
	2019			2018
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	9,290		$	9,285
Allowance for loan losses and basis in acquired property, net		1,240			2,065
Debt and derivative instruments		627			687
Partnership credits		—			161
Partnership and other equity investments		152			223
Interest-only securities		788			738
Other, net		—			102
Total deferred tax assets		12,097			13,261
Deferred tax liabilities:
Unrealized gains on AFS securities, net		26			73
Other, net		161			—
Total deferred tax liabilities		187			73
Deferred tax assets, net		$	11,910		$	13,188

Schedule of Unrecognized Tax Benefits Roll Forward

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

	For the Year Ended December 31,
	2019				2018				2017
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$	416			$	514			$	—
Gross increases - tax positions in current year		—				—				514
Gross decreases - tax positions in current year		—				(98		)		—
Gross decreases - tax positions in prior years		(416		)		—				—
Unrecognized tax benefits as of December 31(1)		$	—			$	416			$	514

⁽¹⁾ 

Amount excludes tax credits of $151 million, and $220 million as of 2018, and 2017, respectively.