INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of components of income tax provision

Details of the Company’s income tax provision are presented below:

In millions of dollars	2023		2022		2021
Current
Federal	$	41	$	407	$	522
Non-U.S.	5,807		4,106		3,288
State	96		270		228
Total current income taxes	$	5,944	$	4,783	$	4,038
Deferred
Federal	$	(1,925)	$	(807)	$	1,059
Non-U.S.	(432)		353		8
State	(59)		(687)		346
Total deferred income taxes	$	(2,416)	$	(1,141)	$	1,413
Provision for income tax on continuing operations before noncontrolling interests(1)	$	3,528	$	3,642	$	5,451
Provision (benefit) for income taxes on:
Discontinued operations	$	—	$	(41)	$	—
Gains (losses) included in AOCI, but excluded from net income	557		(1,573)		(1,684)
Employee stock plans	(13)		(8)		(6)
Opening adjustment to Retained earnings(2)	102		—		—
Opening adjustment to AOCI(3)	12		—		—

(1)Includes the tax on realized investment gains and impairment losses resulting in a provision (benefit) of $51 million and $(92) million in 2023, $14 million and $(137) million in 2022 and $169 million and $(57) million in 2021, respectively.

(2)Related to the adoption of “Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” See Note 1.

(3)Related to the adoption of “Financial Services—Insurance: Targeted Improvements to the Accounting for Long-Duration Contracts.” See Note 1.

Schedule of effective income tax rate reconciliation

The reconciliation of the federal statutory income tax rate to the Company’s effective income tax rate applicable to income from continuing operations (before noncontrolling interests and the cumulative effect of accounting changes) for each of the periods indicated is as follows:

	2023		2022		2021
Federal statutory rate	21.0	%	21.0	%	21.0	%
State income taxes, net of federal benefit	0.3		2.0		2.1
Non-U.S. income tax rate differential	9.5		4.3		1.6
Tax audit resolutions	(0.3)		(3.2)		(0.4)
Nondeductible FDIC premiums(1)	1.7		1.0		0.6
Tax-advantaged investments	(4.4)		(3.0)		(2.3)
Valuation allowance releases(2)	(0.2)		(2.3)		(1.7)
Other, net	(0.3)		(0.4)		(1.1)
Effective income tax rate	27.3	%	19.4	%	19.8	%

(1)Excludes the 2023 FDIC special assessment, which is tax deductible. See Note 30.

(2)See “Deferred Tax Assets” below for a description of the components.

Schedule of deferred tax assets and liabilities

Deferred income taxes at December 31 related to the following:

In millions of dollars	2023		2022
Deferred tax assets
Credit loss deduction	$	5,449	$	5,162
Deferred compensation and employee benefits	2,771		2,059
U.S. tax on non-U.S. earnings	1,349		1,191
Investment and loan basis differences	4,706		5,218
Tax credit and net operating loss carry-forwards	15,250		14,623
Fixed assets and leases	4,297		3,551
Other deferred tax assets	5,235		4,055
Gross deferred tax assets	$	39,057	$	35,859
Valuation allowance	$	3,572	$	2,438
Deferred tax assets after valuation allowance	$	35,485	$	33,421
Deferred tax liabilities
Intangibles and leases	$	(2,333)	$	(2,271)
Non-U.S. withholding taxes	(951)		(1,142)
Debt issuances	(113)		(595)
Derivatives	(587)		(69)
Other deferred tax liabilities	(1,893)		(1,672)
Gross deferred tax liabilities	$	(5,877)	$	(5,749)
Net deferred tax assets	$	29,608	$	27,672

Summary of unrecognized tax benefits

The following is a rollforward of the Company’s unrecognized tax benefits:

In millions of dollars	2023		2022		2021
Total unrecognized tax benefits at January 1	$	1,311	$	1,296	$	861
Increases for current year’s tax positions	59		55		97
Increases for prior years’ tax positions	51		168		515
Decreases for prior years’ tax positions	(138)		(119)		(107)
Amounts of decreases relating to settlements	(3)		(50)		(64)
Reductions due to lapse of statutes of limitation	(4)		(26)		(2)
Foreign exchange, acquisitions and dispositions	1		(13)		(4)
Total unrecognized tax benefits at December 31	$	1,277	$	1,311	$	1,296

Schedule of income tax penalties and interest accrued

Interest and penalties (not included in unrecognized tax benefits above) are a component of Provision for income taxes. 

	2023				2022				2021
In millions of dollars	Pretax		Net of tax		Pretax		Net of tax		Pretax		Net of tax
Total interest and penalties on the Consolidated Balance Sheet at January 1	$	234	$	176	$	214	$	164	$	118	$	96
Total interest and penalties in the Consolidated Statement of Income	47		38		27		16		32		24
Total interest and penalties on the Consolidated Balance Sheet at December 31(1)	271		205		234		176		214		164

(1)Includes $0 million, $3 million and $3 million for non-U.S. penalties in 2023, 2022 and 2021, respectively.

Schedule of major jurisdictions and earliest tax year subject to examination

The following are the major tax jurisdictions in which the Company and its affiliates operate and the earliest tax year subject to examination:

Jurisdiction	Tax year
United States	2016
Mexico	2017
New York State and City	2009
United Kingdom	2016
India	2021
Singapore	2022
Hong Kong	2023
Ireland	2018

Schedule of deferred tax assets and liabilities by jurisdiction

The following table summarizes Citi’s DTAs:

In billions of dollars
Jurisdiction/component(1)	DTAs balance December 31, 2023		DTAs balance December 31, 2022
U.S. federal(2)
Net operating losses (NOLs)(3)	$	3.3	$	3.3
Foreign tax credits (FTCs)	1.2		1.9
General business credits (GBCs)	5.6		5.2
Future tax deductions and credits	12.0		10.1
Total U.S. federal	$	22.1	$	20.5
State and local
New York NOLs	$	1.7	$	1.9
Other state NOLs	0.1		0.2
Future tax deductions	2.4		2.2
Total state and local	$	4.2	$	4.3
Non-U.S.
NOLs	$	1.0	$	0.7
Future tax deductions	2.3		2.2
Total non-U.S.	$	3.3	$	2.9
Total	$	29.6	$	27.7

(1)All amounts are net of valuation allowances.

(2)Included in the net U.S. federal DTAs of $22.1 billion as of December 31, 2023 were deferred tax liabilities of $2.9 billion that will reverse in the relevant carry-forward period and may be used to support the DTAs.

(3)Consists of non-consolidated tax return NOL carry-forwards that are eventually expected to be utilized in Citigroup’s consolidated tax return.

Summary of tax carryforwards

The following table summarizes the amounts of tax carry-forwards and their expiration dates: 

In billions of dollars
Year of expiration	December 31, 2023		December 31, 2022
U.S. tax return general basket foreign tax credit carry-forwards(1)
2025	$	0.1	$	0.8
2027	1.1		1.1
Total U.S. tax return general basket foreign tax credit carry-forwards	$	1.2	$	1.9
U.S. tax return branch basket foreign tax credit carry-forwards(1)
2028	$	0.7	$	0.7
2029	0.2		0.2
2033	1.0		—
Total U.S. tax return branch basket foreign tax credit carry-forwards	$	1.9	$	0.9
U.S. tax return general business credit carry-forwards
2032	$	0.4	$	0.4
2033	0.3		0.3
2034	0.2		0.2
2035	0.2		0.2
2036	0.2		0.2
2037	0.5		0.5
2038	0.5		0.5
2039	0.7		0.7
2040	0.7		0.7
2041	0.8		0.8
2042	0.7		0.7
2043	0.4		—
Total U.S. tax return general business credit carry-forwards	$	5.6	$	5.2
U.S. subsidiary separate federal NOL carry-forwards
2027	$	0.1	$	0.1
2028	0.1		0.1
2030	0.3		0.3
2033	1.7		1.6
2034	1.9		2.0
2035	3.3		3.3
2036	2.1		2.1
2037	1.0		1.0
Unlimited carry-forward period	5.4		5.3
Total U.S. subsidiary separate federal NOL carry-forwards(2)	$	15.9	$	15.8
New York State NOL carry-forwards(2)
2034	$	9.9	$	11.5
New York City NOL carry-forwards(2)
2034	$	8.7	$	10.3
Non-U.S. NOL carry-forwards(1)
Various	$	1.4	$	1.1

(1)Before valuation allowance.

(2)Pretax.