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Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income tax expense (benefit) consisted of the following for the periods indicated:
Year Ended December 31,
202220212020
Current tax expense (benefit):
Federal$(5)$(463)$(9)
State(3)19 — 
Total current tax expense (benefit)(8)(444)(9)
Deferred tax expense (benefit):
Federal8 392 (12)
State(5)(46)3 
Total deferred tax expense (benefit)3 346 (9)
Total income tax expense (benefit)$(5)$(98)$(18)

Income taxes were different from the amount computed by applying the federal income tax rate to Income (loss) before income taxes for the following reasons for the periods indicated:
Year Ended December 31,
202220212020
Income (loss) before income taxes$428 $2,777 $352 
Tax Rate21.0 %21.0 %21.0 %
Income tax expense (benefit) at federal statutory rate90 583 74 
Tax effect of:
Valuation allowance7 (521)(26)
Dividends received deduction(44)(34)(39)
State tax expense (benefit)(16)37 16 
Noncontrolling interest16 (161)(33)
Tax credits(63)(14)(11)
Nondeductible expenses7 5 1 
Other(1)7 — 
Income tax expense (benefit)$(5)$(98)$(18)
Effective tax rate(1.2)%(3.5)%(5.1)%

Current Income Tax

The Company had a current income tax receivable/(payable) of $5 and $(23) as of December 31, 2022 and 2021, respectively.
Temporary Differences

The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities were as follows as of the dates indicated:
December 31,
20222021
Deferred tax assets
Federal and state loss carryforwards$1,523 $1,542 
Investments30 102 
Net unrealized investment losses667 — 
Compensation and benefits179 240 
Tax credits110 39 
Other assets81 66 
Total gross assets before valuation allowance2,590 1,989 
Less: Valuation allowance70 63 
Assets, net of valuation allowance2,520 1,926 
Deferred tax liabilities
Net unrealized investment gains— (687)
Insurance reserves(107)(46)
Deferred policy acquisition costs(489)(200)
Other liabilities— (7)
Total gross liabilities(596)(940)
Net deferred income tax asset (liability)$1,924 $986 

The following table sets forth the federal, state and credit carryforwards for tax purposes as of the dates indicated:
December 31,
20222021
Federal net operating loss carryforward
$6,816 
(1)
$6,955 
State net operating loss carryforward
2,069 
(2)
1,893 
Credit carryforward
110 
(3)
40 
(1) Approximately $3,890 of the net operating losses carryforwards ("NOL") not subject to expiration. $2,926 of the NOLs expire between 2025 and 2037.
(2) Approximately $332 of the NOLs not subject to expiration. $1,737 of the NOLs expire between 2022 and 2042.
(3) Includes credits claimed in 2022 related to tax years 2012 - 2017. Expires between 2032 and 2041.

Valuation allowances are provided when it is considered more likely than not that some portion or all of the deferred tax assets ("DTAs") will not be realized. As of December 31, 2022 and 2021, the Company had a total valuation allowance of $70 and $63, respectively. As of December 31, 2022 and 2021, $193 and $186, respectively, of this valuation allowance was allocated to continuing operations, and $(123) and $(123) allocated to Other comprehensive income (loss) related to realized and unrealized capital losses, respectively.

Significant judgment is required to evaluate the need for a valuation allowance against DTAs. The Company reviews all available positive and negative evidence to determine if a valuation allowance is recorded, including historical and projected pre-tax book income, tax planning strategies and reversals of temporary differences. As of December 31, 2022, the Company had year-to-date losses on securities of $4,929 in Other comprehensive income primarily driven by increases in interest rates. The Company determined that the increase in unrealized losses on fixed income investments will be offset in future years by the ordinary income produced from these investments as they reach maturity. Additionally, operating income remained positive for the period and was largely consistent with the 2021 year-end valuation allowance analysis. After evaluating the positive and negative evidence, the Company did not change its judgment regarding the realization of DTAs in 2022.
The valuation allowance as of December 31, 2022 of $70 was against certain historic state net operating losses that were below more likely than not to be utilized. The Company will continue to assess all available evidence during future periods to evaluate any changes to the realization of these DTAs.

For the year ended December 31, 2021, the Company determined that positive evidence exceeded negative evidence that all of its federal and certain state DTAs would be realized. The Company recorded a valuation allowance release of $290, which was allocated to continuing operations. Additionally, due to the Individual Life Transaction, the Company recorded a release of $231 of a stranded tax benefit allocated to continuing operations from Accumulated other comprehensive income. The total release allocated to continuing operations was $521 in 2021.

Unrecognized Tax Benefits

Reconciliations of the change in the unrecognized income tax benefits were as follows for the periods indicated:
Year Ended December 31,
202220212020
Balance at beginning of period$34 $33 $32 
Additions (reductions) for tax positions related to current year— 1 1 
Additions (reductions) for tax positions related to prior years(1)— — 
Balance at end of period$33 $34 $33 

The Company had $1, $1, and $1 of unrecognized tax benefits as of December 31, 2022, 2021 and 2020, respectively, which would affect the Company's effective rate if recognized.

Interest and Penalties

The Company recognizes interest expense and penalties, if applicable, related to unrecognized tax benefits in tax expense net of federal income tax. The total amounts of gross accrued interest and penalties on the Company's Consolidated Balance Sheets as of December 31, 2022 and 2021 were immaterial. The Company recognized no gross interest (benefit) related to unrecognized tax in its Consolidated Statements of Operations for the years ended December 31, 2022, 2021 and 2020.

The timing of the payment of the remaining accrued interest and penalties cannot be reasonably estimated.

Tax Regulatory Matters

For the tax years 2020 through 2022, the Company participated in the Internal Revenue Service ("IRS") Compliance Assurance Process ("CAP"), which is a continuous audit program provided by the IRS. For the 2020 tax year, the Company was in the Compliance Maintenance Bridge ("Bridge") phase of CAP. In the Bridge phase, the IRS did not conduct any review or provide any letters of assurance for that tax year.

Tax Legislative Matters

In August 2022, the Inflation Reduction Act ("IRA of 2022") was signed into law creating the corporate alternative minimum tax ("CAMT"). The IRS has only issued limited guidance on the CAMT, and uncertainty remains regarding the application of and potential adjustments to the CAMT. The Company is uncertain as to whether it will qualify for the CAMT and will continue to evaluate the applicability as more guidance is provided.