Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
	(Dollars in millions)
Current income tax benefit (provision)	$	(3,505)	$	(5,521)	$	(3,803)
Deferred income tax benefit (provision)(1)	195		(252)		729
Provision for federal income taxes	$	(3,310)	$	(5,773)	$	(3,074)

(1)Amount excludes the current income tax effect of items recognized directly in “Total 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,
	2022			2021			2020
Statutory corporate tax rate		21.0	%		21.0	%		21.0	%
Research tax credits		(1.5)			—			—
Equity investments in affordable housing projects		(0.1)			(0.1)			(0.1)
Valuation allowance		0.7			—			—
Other		0.3			(0.2)			(0.2)
Effective tax rate		20.4	%		20.7	%		20.7	%

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
	2022			2021
	(Dollars in millions)
Deferred tax assets:
Mortgage and mortgage-related assets		$	6,764		$	7,547
Allowance for loan losses and basis in acquired property, net		2,055			1,060
Derivative instruments		1,153			778
Partnership and other equity investments		52			88
Interest-only securities		3,811			3,977
Other, net		295			—
Total deferred tax assets		14,130			13,450
Deferred tax liabilities:
Debt instruments		1,104			377
Other, net		—			358
Total deferred tax liabilities		1,104			735
Valuation allowance		(115)			—
Deferred tax assets, net		$	12,911		$	12,715