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Income Taxes
 12 Months Ended
Jan. 28, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In August 2022, the Inflation Reduction Act of 2022 (IRA) was signed into law. Among other things, the IRA imposes a 15% corporate alternative minimum tax (the “Corporate AMT”) for tax years beginning after December 31, 2022 and levies a 1% excise tax on net stock repurchases after December 31, 2022. The excise tax on the net stock repurchase portion of the IRA did not have an impact on our results of operations or financial position in fiscal 2023 and the Company does not expect the Corporate AMT, excise tax, or other provisions of the IRA to have a material impact on its consolidated financial statements.
For financial reporting purposes, components of income before income taxes are as follows:
  Fiscal Year Ended
In millionsJanuary 28,
2023		January 29,
2022		January 30,
2021
United States$4,029 $3,934 $642 
Foreign607 464 (553)
Income before income taxes$4,636 $4,398 $89 
The provision (benefit) for income taxes includes the following:
  Fiscal Year Ended
In millionsJanuary 28,
2023		January 29,
2022		January 30,
2021
Current:
Federal$656 $766 $190 
State233 271 36 
Foreign185 122 5 
Deferred:
Federal52 (32)(98)
State0 (26)(25)
Foreign12 14 (109)
Provision (benefit) for income taxes$1,138 $1,115 $(1)
TJX had net deferred tax assets (liabilities) as follows:
  Fiscal Year Ended
In millionsJanuary 28,
2023		January 29,
2022
Deferred tax assets:
Net operating loss carryforward$156 $159 
Pension, stock compensation, postretirement and employee benefits326 368 
Operating lease liabilities2,500 2,379 
Accruals and reserves
245 237 
Other
14 13 
Total gross deferred tax assets$3,241 $3,156 
Valuation allowance(86)(85)
Total deferred tax asset$3,155 $3,071 
Deferred tax liabilities:
Property, plant and equipment$628 $553 
Capitalized inventory61 48 
Operating lease right of use assets2,404 2,289 
Tradename/intangibles21 19 
Undistributed foreign earnings5 9 
Other5 12 
Total deferred tax liabilities$3,124 $2,930 
Net deferred tax asset$31 $141 
Non-current asset$158 $185 
Non-current liability(127)(44)
Total$31 $141 
TJX has provided for all applicable state and foreign withholding taxes on all undistributed earnings of its foreign subsidiaries in Canada, Puerto Rico, Italy, India, Hong Kong and Vietnam through January 28, 2023. The Company has not provided for federal, state, or foreign withholding taxes on the approximately $1.2 billion of undistributed earnings related to all other foreign subsidiaries as such earnings are considered to be indefinitely reinvested in the business. The net amount of unrecognized state and foreign withholding tax liabilities related to the undistributed earnings is not material.
As of January 28, 2023 and January 29, 2022, for state income tax purposes, TJX had net operating loss carryforwards of $328 million and $291 million respectively, which expire, if unused, in the years 2024 through 2043. TJX has analyzed the realization of the state net operating loss carryforwards on an individual state basis. For those states where the Company has determined that it is more likely than not that the state net operating loss carryforwards will not be realized, a valuation allowance of $16 million has been provided for the deferred tax asset as of January 28, 2023 and $14 million as of January 29, 2022.
The Company had available for foreign income tax purposes (related to Australia, Austria, Germany, the Netherlands, Poland and the U.K.) net operating loss carryforwards of $508 million as of January 28, 2023 and $534 million as of January 29, 2022. The full amount of the loss carryforwards do not expire. For the deferred tax assets associated with the net operating loss carryforwards for which management has determined it is more likely than not that the deferred tax assets will not be realized, TJX had valuation allowances recorded of approximately $71 million as of both January 28, 2023 and January 29, 2022.
The difference between the U.S. federal statutory income tax rate and TJX’s worldwide effective income tax rate is reconciled below:
  Fiscal Year Ended
  January 28,
2023		January 29,
2022		January 30,
2021
U.S. federal statutory income tax rate21.0 %21.0 %21.0 %
Effective state income tax rate4.3 4.6 28.1 
Impact of foreign operations1.1 0.9 21.4 
Excess share-based compensation(1.0)(1.2)(59.4)
Tax credits(0.3)(0.3)(8.9)
Nondeductible/nontaxable items(0.1)0.2 (3.3)
All other(0.5)0.2 (0.3)
Worldwide effective income tax rate24.5 %25.4 %(1.4)%
TJX’s effective income tax rate decreased for fiscal 2023 compared to fiscal 2022. The decrease in the fiscal 2023 effective income tax rate is primarily due to the lapse of statutes of limitations and resolution of various tax matters, and the change of jurisdictional mix of profits and losses, partially offset by a reduction of excess tax benefits from share-based compensation.
TJX had net unrecognized tax benefits of $265 million as of January 28, 2023, $288 million as of January 29, 2022 and $272 million as of January 30, 2021.
A reconciliation of the beginning and ending gross amount of unrecognized tax benefits is as follows:
  Fiscal Year Ended
In millionsJanuary 28,
2023		January 29,
2022		January 30,
2021
Balance, beginning of year$280 $269 $259 
Additions for uncertain tax positions taken in current year8 10 12 
Additions for uncertain tax positions taken in prior years7 3 1 
Reductions for uncertain tax positions taken in prior years(2)— — 
Reductions resulting from lapse of statute of limitations(18)(2)(3)
Settlements with tax authorities(9)— 0 
Balance, end of year$266 $280 $269 
Included in the gross amount of unrecognized tax benefits are items that will impact future effective tax rates upon recognition. These items amounted to $251 million as of January 28, 2023, $260 million as of January 29, 2022 and $250 million as of January 30, 2021.
TJX is subject to U.S. federal income tax as well as income tax in multiple state, local and foreign jurisdictions. In the U.S. and India, fiscal years through 2010 are no longer subject to examination. In all other jurisdictions, fiscal years through 2011 are no longer subject to examination.
TJX’s accounting policy is to classify interest and penalties related to income tax matters as part of income tax expense. The amount of interest and penalties expensed was $7 million for both of the fiscal years ended January 28, 2023 and January 29, 2022, and $8 million for the fiscal year ended January 30, 2021. The accrued amounts for interest and penalties are $37 million as of January 28, 2023, $43 million as of January 29, 2022 and $36 million as of January 30, 2021.
Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statutes of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions, it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those represented on the consolidated financial statements as of January 28, 2023. During the next twelve months, it is reasonably possible that tax audit resolutions may reduce unrecognized tax benefits by up to $52 million, which would reduce the provision for taxes on earnings.