Income Taxes

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The statute of limitations related to Kemper and its eligible subsidiaries’ consolidated Federal income tax returns is closed for all tax years up to and including 2011 as well as 2018 and 2019. As a result of the Company filing amended federal income tax returns, tax years 2012 and 2013 are under limited examination with respect to carryback adjustments associated with the amended returns. Tax years 2020 and 2022 are currently under examination. The statute of limitations related to tax years 2014, 2015, 2016 and 2017 has been extended to June 30, 2025. Tax years 2020, 2021 and 2022 are subject to a statute of three years from the extended due dates of October 15, 2021, 2022 and 2023, respectively.

The expiration of the statute of limitations related to the various state income tax returns that Kemper and its subsidiaries file varies by state.

Note 18 - Income Taxes (Continued)

The interim period tax expense or benefit is the difference between the year-to-date income tax provision and the amounts reported for the previous interim periods of the fiscal year. For the three months ended September 30, 2024 the income tax expense attributable to Kemper Corporation was $18.9 million, or 20.4% of income before income taxes, compared to an income tax benefit of $44.4 million, or 23.3% of loss before income taxes for the three months ended September 30, 2023. For the nine months ended September 30, 2024 the income tax expense attributable to Kemper Corporation was $53.4 million, or 19.5% of income before income taxes, compared to an income tax benefit of $87.0 million, or 21.2% of loss before income taxes for the nine months ended September 30, 2023.

There were no Unrecognized Tax Benefits at September 30, 2024, or December 31, 2023. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in Income Tax (Expense) Benefit. There were no liabilities for accrued interest and penalties for the nine months ended September 30, 2024 and 2023.

For the nine months ended September 30, 2024, federal income taxes paid, net of income tax refunds received, were $9.9 million. For the nine months ended September 30, 2023, federal income tax refunds received, net of income taxes paid, were $113.6 million.

For the nine months ended September 30, 2024 and 2023, state income taxes paid, net of refunds received, were $0.6 million and $0.1 million, respectively. No foreign income taxes were paid or refunded for the nine months ended September 30, 2024 and September 30, 2023, respectively.