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Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | 9) Income Taxes The Company’s income tax liability is summarized as follows: Summary of Income Tax Liability
|  | 2021 |  |  | 2020 |
|  | December 31 |
|  | 2021 |  |  | 2020 |
Current |  | $ | (1,558,687 | ) |  | $ | 2,595,877 |
Deferred |  |  | 32,594,783 |  |  |  | 22,662,923 |
Total |  | $ | 31,036,096 |  |  | $ | 25,258,800 |
Significant components of the Company’s deferred tax (assets) and liabilities are approximately as follows: Schedule of Deferred Tax Assets and Liabilities
|  | 2021 |  |  | 2020 |
|  | December 31 |
|  | 2021 |  |  | 2020 |
Assets |  |  |  |  |  |
Future policy benefits |  | $ | (13,015,255 | ) |  | $ | (12,657,045 | )
Loan loss reserve |  |  | (636,256 | ) |  |  | (5,352,942 | )
Unearned premium |  |  | (642,755 | ) |  |  | (699,011 | )
Net operating loss |  |  | (898,029 | ) |  |  | (334,085 | )
Deferred compensation |  |  | (2,750,406 | ) |  |  | (2,833,298 | )
Deposit obligations |  |  | (635,878 | ) |  |  | (610,041 | )
Other |  |  | (1,712,895 | ) |  |  | (1,269,533 | )
Less: Valuation allowance |  |  | 882,535 |  |  |  | 961,920 |
Total deferred tax assets |  |  | (19,408,939 | ) |  |  | (22,794,035 | )
Liabilities |  |  |  |  |  |  |  |
Deferred policy acquisition costs |  |  | 17,166,200 |  |  |  | 16,430,001 |
Basis difference in property, equipment and real estate |  |  | 9,247,242 |  |  |  | 5,312,787 |
Value of business acquired |  |  | 1,768,501 |  |  |  | 1,880,602 |
Deferred gains |  |  | 15,598,360 |  |  |  | 12,124,226 |
Trusts |  |  | 1,064,387 |  |  |  | 1,064,387 |
Tax on unrealized appreciation |  |  | 7,159,032 |  |  |  | 8,644,955 |
Total deferred tax liabilities |  |  | 52,003,722 |  |  |  | 45,456,958 |
Net deferred tax liability |  | $ | 32,594,783 |  |  | $ | 22,662,923 |
The valuation allowance relates to differences between recorded deferred tax assets and liabilities and ultimate anticipated realization. SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2021 and 2020 9) Income Taxes (Continued) The Company’s income tax expense is summarized as follows: Schedule of Components of Income Tax Expense (Benefit)
|  | 2021 |  |  | 2020 |
|  | December 31 |
|  | 2021 |  |  | 2020 |
Current |  |  |  |  |  |
Federal |  | $ | 629,921 |  |  | $ | 10,678,612 |
State |  |  | 343,428 |  |  |  | 2,320,233 |
Total Current Income Tax Expense (Benefit) |  |  | 973,349 |  |  |  | 12,998,845 |
Deferred |  |  |  |  |  |  |  |
Federal |  |  | 9,832,556 |  |  |  | 2,677,943 |
State |  |  | 1,475,880 |  |  |  | 176,726 |
Total Deferred Income Tax Expense (Benefit) |  |  | 11,308,436 |  |  |  | 2,854,669 |
Total |  | $ | 12,281,785 |  |  | $ | 15,853,514 |
The reconciliation of income tax expense at the U.S. federal statutory rates is as follows: Schedule of Effective Income Tax Rate Reconciliation
|  | 2021 |  |  | 2020 |
|  | December 31 |
|  | 2021 |  |  | 2020 |
Computed expense at statutory rate |  | $ | 10,878,163 |  |  | $ | 15,004,527 |
State tax expense, net of federal tax benefit |  |  | 1,437,255 |  |  |  | 1,972,598 |
Change in valuation allowance |  |  | (79,385 | ) |  |  | (1,477,474 | )
Other, net |  |  | 45,752 |  |  |  | 353,863 |
Income tax expense |  | $ | 12,281,785 |  |  | $ | 15,853,514 |
The Company’s overall effective tax rate for the years ended December 31, 2021 and 2020 was 23.7% and 22.2% respectively. The Company’s effective tax rates differ from the U.S. federal statutory rate of 21% partially due to its provision for state income taxes and a decrease to the valuation allowance. The increase in the effective tax rate when compared to the prior year is partially due to a smaller decrease to the valuation allowance in the current period when compared to the prior period year. At December 31, 2021, the Company had no significant unrecognized tax benefits. As of December 31, 2021, the Company does not expect any material changes to the estimated amount of unrecognized tax benefits in the next twelve months. Federal and state income tax returns for 2018 through 2021 are subject to examination by taxing authorities. Net Operating Losses and Tax Credit Carryforwards: Summary of Operating Loss Carryforwards
Year of Expiration |  |  |
2022 |  | $ | - |
2023 |  |  | - |
2024 |  |  | - |
2025 |  |  | - |
2026 |  |  | - |
Thereafter up through 2037 |  |  | 1,237,784 |
Indefinite carryforwards |  |  | 2,742,661 |
|  | $ | 3,980,445 |
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements Years Ended December 31, 2021 and 2020

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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