Is Deferred Tax a Current Asset?

true-tamplin_2x_mam3b7

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on April 01, 2024

Deferred taxes are non-current assets for accounting purposes. A current asset is any asset that will provide an economic benefit for or within one year.

Deferred taxes are items on the balance sheet that arise from an overpayment or advance payment of taxes, resulting in a refund later.

Before 2016, deferred taxes could be classified as current or non-current based on their expected reversal date.

As of 2016, however, the FASB mandates that deferred taxes must always be categorized as non-current assets.

Is Deferred Tax a Current Asset? FAQs

true-tamplin_2x_mam3b7

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.