Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

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,
	2020			2019			2018
	(Dollars in millions)
Current income tax benefit (provision)		$	(3,803)		$	(2,089)		$	114
Deferred income tax benefit (provision)(1)		729			(1,328)			(4,254)
Provision for federal income taxes		$	(3,074)		$	(3,417)		$	(4,140)

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

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,
	2020			2019			2018
Statutory corporate tax rate		21.0	%		21.0	%		21.0	%
Equity investments in affordable housing projects		(0.1)			(0.2)			(0.6)
Change in unrecognized tax benefits		—			(1.2)			—
Other		(0.2)			(0.2)			0.2
Effective tax rate		20.7	%		19.4	%		20.6	%

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
	2020			2019
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	8,241		$	9,290
Allowance for loan losses and basis in acquired property, net		1,798			1,240
Debt and derivative instruments		526			627
Partnership and other equity investments		129			152
Interest-only securities		2,561			788
Total deferred tax assets		13,255			12,097
Deferred tax liabilities:
Unrealized gains on AFS securities, net		20			26
Other, net		288			161
Total deferred tax liabilities		308			187
Deferred tax assets, net		$	12,947		$	11,910

Schedule of Unrecognized Tax Benefits Roll Forward

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

	For the Year Ended December 31,
	2020			2019			2018
	(Dollars in millions)
Unrecognized tax benefits as of January 1		$	—		$	416		$	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

(1)Amount excludes tax credits of $151 million as of December 31, 2018. We had no unrecognized tax benefits as of December 31, 2020 and December 31, 2019.