Company: TFC
Filing Date: 2025-02-25
Form Type: 10-K
Source: 0000092230-25-000020
Chunk: 418

Company: TRUIST FINANCIAL CORP
Filing Date: 2025-02-25
Form: 10-K
Item: Item 7A
Chunk 418
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easurement of the pension plan and the reduction of pension benefit obligations following the sale of TIH. Refer to “Note 15. Benefit Plans” for additional information.

Truist Financial Corporation   133

NOTE 14. Income Taxes

The components of the income tax provision or benefit are as follows:Year Ended December 31,(Dollars in millions)202420232022Current expense:   Federal$(514)$1,012 $784 State(15)135 96 Total current expense(529)1,147 880 Deferred expense:Federal45 (390)316 State(72)(19)54 Total deferred expense(27)(409)370 Provision (benefit) for income taxes$(556)$738 $1,250 A reconciliation of the provision for income taxes at the statutory federal income tax rate to the Company’s actual provision for income taxes and effective tax rate is presented in the following table:Year Ended December 31,202420232022(Dollars in millions)Amount% of Income Before TaxesAmount% of Income Before TaxesAmount% of Income Before TaxesFederal income taxes at statutory rate$(126)21.0 %$(161)21.0 %$1,476 21.0 %Increase (decrease) in provision for income taxes as a result of:State income taxes, net of federal tax benefit(69)11.5 91 (11.9)118 1.7 Non-deductible goodwill— — 1,276 (166.8)— — Internal legal entity restructuring— — (191)25.0 — — Income tax credits, net of amortization(249)41.4 (173)22.6 (233)(3.3)Tax-exempt interest(161)26.8 (157)20.5 (109)(1.6)Other, net49 (8.2)53 (6.9)(2)— Provision (benefit) for income taxes$(556)92.5 $738 (96.5)$1,250 17.8 

134   Truist Financial Corporation

Deferred income tax assets and liabilities result from differences between the timing of the recognition of assets and liabilities for financial reporting purposes and for income tax purposes. DTAs and DTLs are measured using the enacted federal and state tax rates in the periods in