Income Tax

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

CICA International, a wholly owned subsidiary of Citizens, is considered a controlled foreign corporation for federal tax purposes. As a result, the insurance activity of CICA International is subject to Subpart F of the IRC and is included in Citizens’ taxable income. Due to the 0% enacted tax rate in Bermuda, there are no deferred taxes recorded for CICA International's temporary differences. For the three months ended March 31, 2022 and March 31, 2021, the Subpart F income inclusion generated $0.8 million and $0.4 million, respectively, of federal income tax expense.

A reconciliation between the U.S. corporate income tax rate and the effective income tax rate is as follows:

Three Months Ended March 31,	2022				2021
(In thousands, except for %)	Amount		%		Amount		%
Federal income tax expense:
Expected tax expense (benefit)	$	(205)	21.0	%	$	(577)	21.0	%
Foreign income tax rate differential	(299)		30.7	%	(152)		5.5	%
Tax-exempt interest and dividends-received deduction	(25)		2.6	%	(30)		1.1	%
Annualized effective tax rate adjustment	97		(10.0)	%	655		(23.8)	%
Effect of uncertain tax position	12		(1.2)	%	603		(21.9)	%
CICA International Subpart F income	754		(77.4)	%	392		(14.3)	%
Nondeductible officer compensation	21		(2.2)	%	(73)		2.7	%
Other	4		(0.4)	%	7		(0.3)	%
Total federal income tax expense (benefit)	$	359	(36.9)	%	$	825	(30.0)	%

Income tax expense consists of:

	Three Months Ended
	March 31,
(In thousands)	2022		2021
Federal income tax expense:
Current	$	172	1,257
Deferred	187		(432)
Total federal income tax expense	$	359	825