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Income Taxes | 9 Months Ended
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Sep. 30, 2017
Income Taxes [Abstract] |
Income Taxes |
Note 8. | Income Taxes
A reconciliation of the differences between income taxes computed at the federal statutory income tax rate and income tax expense (benefit) is as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Federal income tax provision at statutory rate of 35% |  | $ | 221 |  |  | $ | 110 |  |  | $ | 864 |  |  | $ | 717 |
Dividends-received deduction |  |  | (23 | ) |  |  | (25 | ) |  |  | (71 | ) |  |  | (71 | )
Small life insurance company deduction |  |  | (313 | ) |  |  | - |  |  |  | (343 | ) |  |  | - |
Other permanent differences |  |  | 18 |  |  |  | 12 |  |  |  | 52 |  |  |  | 45 |
Adjustment for prior years’ estimates to actual |  |  | (19 | ) |  |  | 71 |  |  |  | (19 | ) |  |  | 71 |
Income tax expense (benefit) |  | $ | (116 | ) |  | $ | 168 |  |  | $ | 483 |  |  | $ | 762 |
The components of income tax expense (benefit) were:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2017 |  |  | 2016 |  |  | 2017 |  |  | 2016 |
Current - Federal |  | $ | (157 | ) |  | $ | 11 |  |  | $ | 906 |  |  | $ | 601 |
Deferred - Federal |  |  | 41 |  |  |  | 157 |  |  |  | (423 | ) |  |  | 161 |
Total |  | $ | (116 | ) |  | $ | 168 |  |  | $ | 483 |  |  | $ | 762 |
The primary differences between the effective tax rate and the federal statutory income tax rate for the three month and nine month periods ended September 30, 2017 resulted from the dividends-received deduction (“DRD”) and the small life insurance company deduction (“SLD”). The current estimated DRD is adjusted as underlying factors change and can vary from estimates based on, but not limited to, actual distributions from investments as well as the amount of the Company’s taxable income. The SLD varies in amount and is determined at a rate of 60 percent of the tentative life insurance company taxable income (“LICTI”). The SLD for any taxable year is reduced (but not below zero) by 15 percent of the tentative LICTI for such taxable year as it exceeds $3,000 and is ultimately phased out at $15,000. The primary differences between the effective tax rate and the federal statutory income tax rate for the three month and nine month periods ended September 30, 2016 resulted from provision-to-filed return adjustments, as described below, and the DRD. The provision-to-filed return adjustments are generally updated at the completion of the third quarter of each fiscal year and were $19 and $71 in the three month and nine month periods ended September 30, 2017 and 2016, respectively.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
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