[murano]

So I can understand the recognition and reversal of DTA:
Say someone’s tax return income is 15000 and financial income is 10000 due to a temporary difference, he should recognize a deferred tax asset.(say tax rate is 30%)
Dr income tax expense-current 4500
Dr deferred tax asset 1500
Cr income tax expense-deferred 1500
Cr income tax payable 4500
In the next year, say the taxpayer has 0 on his tax return, and 5000 on his financial statement. So 1500 is now recognized as tax expense:
Dr income tax expense-deferred 1500
Cr deferred tax asset 1500
The taxpayer paid 4500 in total, which makes sense.

But I cannot understand the reversal of DTL
If someone’s tax return income is 10000 and financial income is 15000 due to a temporary difference, he should recognize a deferred tax liability.(say tax rate is 30%)
Dr income tax expense-current 3000
Dr income tax expense-deferred 1500
Cr income tax payable 3000
Cr deferred tax liability 1500
In the next year, say the taxpayer has 0 financial income ,but the deferred income (5000) is now on his tax return, now he has to pay 1500 more

so to me , the entry should be
Dr deferred tax liability 1500
Cr income tax payable/cash 1500
and the total tax he paid is now 4500. But many people said this is wrong.
Can anyone point out what I’m missing and what the right entry should be?
This is driving crazy lol

[Anonymous]

The reversal entry should be:

Deferred tax liability 1500
Income tax expense-deferred 1500

Since these are the accounts that were originally debited/credited.

[murano]

that's what they said to me. But in that case, you paid 3000 tax in total(only 3000 is booked to income tax payable) while you shouldve paid 4500

[Anonymous]

I think the payment would (already) be booked separately in current income tax expense:

Dr Income tax expense–current XXX
Cr Income tax payable XXX

[Author]

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