Income Taxes (Tables)

12 Months Ended

Sep. 30, 2018

Analysis of Deferred Tax Asset and Liability

An analysis of DLH's deferred tax asset and liability is as follows:



	Year Ended
	September 30,
(amounts in thousands)	2018			2017
Deferred income tax asset:
Net operating loss carry forwards	$	5,005		$	10,786
AMT credit carryforward	185			316
Stock based compensation	140			236
Accrued expenses	1,202			1,303
Other items, net	45			241
Total deferred tax asset	6,577			12,882
Deferred tax liability:
Fixed and intangible assets	(2,440		)	(3,243		)
Net deferred tax asset	$	4,137		$	9,639

Significant Components of the Expense (Benefit) From Continuing Operations

The significant components of income tax expense for income taxes from continuing operations are summarized as follows:



	Year Ended
	September 30,
(amounts in thousands)	2018		2017
Current expense	$	328	$	338
Deferred expense	5,502		1,776
Total expense	$	5,830	$	2,114

Significant Differences Between the Income Taxes at Federal Statutory Rate and Effective Tax Rate

The following table indicates the significant differences between our income taxes at the federal statutory rate and DLH's effective tax rate for continuing operations:



	Year Ended
	September 30,
(amounts in thousands)	2018		2017
Federal statutory rate	$	1,861	$	1,837
State taxes, net	393		260
Other permanent items	77		17
Miscellaneous true up of prior year deferred	134		—
Discrete item (a)	3,365		—
Total	$	5,830	$	2,114

(a): Write-down of deferred tax assets due to change in federal income tax rate from the 2017 Tax Act.