AMN HEALTHCARE SERVICES INCAMN
AMN HEALTHCARE SERVICES INC Income Taxes Disclosure
Income Taxes
Income (loss) before income taxes includes the following components for the years ended December 31, 2025, 2024, and 2023:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
United States | $ | (101,382) | $ | (173,087) | $ | 283,822 | |||||||||||
Foreign | 319 | 513 | 467 | ||||||||||||||
| Income (loss) before income taxes | $ | (101,063) | $ | (172,574) | $ | 284,289 | |||||||||||
The provision for income taxes from operations for the years ended December 31, 2025, 2024 and 2023 consists of the following:
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Current income taxes: | |||||||||||||||||
| Federal | $ | 7,617 | $ | 20,159 | $ | 65,426 | |||||||||||
| State | 6,618 | 5,042 | 20,666 | ||||||||||||||
Foreign | (47) | 271 | 451 | ||||||||||||||
| Total | 14,188 | 25,472 | 86,543 | ||||||||||||||
| Deferred income taxes: | |||||||||||||||||
| Federal | (11,124) | (36,762) | (10,273) | ||||||||||||||
| State | (8,472) | (14,382) | (2,730) | ||||||||||||||
Foreign | 47 | 77 | 70 | ||||||||||||||
| Total | (19,549) | (51,067) | (12,933) | ||||||||||||||
| Provision (benefit) for income taxes from operations | $ | (5,361) | $ | (25,595) | $ | 73,610 | |||||||||||
The Company’s income tax expense (benefit) differs from the amount that would have resulted from applying the federal statutory rate of 21% for 2025, 2024 and 2023 to pretax income (loss) from operations because of the effect of the following items during the years ended December 31, 2025, 2024 and 2023.
| Years Ended December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||
Amount | Rate | Amount | Rate | Amount | Rate | |||||||||||||||||||||
Pretax income (loss) from operations | $ | (101,063) | $ | (172,574) | $ | 284,289 | ||||||||||||||||||||
| U.S. federal statutory tax rate | $ | (21,223) | 21.00 | % | $ | (36,241) | 21.00 | % | $ | 59,701 | 21.00 | % | ||||||||||||||
State and local income tax, net of federal income tax effect (1) | (1,465) | 1.45 | % | (7,379) | 4.28 | % | 14,170 | 4.98 | % | |||||||||||||||||
Foreign tax effects | (65) | 0.06 | % | 243 | (0.14) | % | 556 | 0.20 | % | |||||||||||||||||
Tax credits | ||||||||||||||||||||||||||
Research and development tax credits | 950 | (0.94) | % | (1,289) | 0.75 | % | (3,172) | (1.12) | % | |||||||||||||||||
| Nontaxable or nondeductible items | ||||||||||||||||||||||||||
| Nondeductible compensation | 2,739 | (2.71) | % | 1,396 | (0.81) | % | 905 | 0.32 | % | |||||||||||||||||
Share-based compensation | 2,948 | (2.92) | % | 513 | (0.30) | % | (944) | (0.33) | % | |||||||||||||||||
Goodwill impairment losses | 8,267 | (8.18) | % | 18,054 | (10.46) | % | — | — | % | |||||||||||||||||
Company-owned life insurance policies | (6,293) | 6.23 | % | (4,855) | 2.81 | % | (4,428) | (1.56) | % | |||||||||||||||||
Meals per diems | 2,244 | (2.22) | % | 2,110 | (1.22) | % | 3,010 | 1.06 | % | |||||||||||||||||
Sale of disposal group | 4,247 | (4.20) | % | — | — | % | — | — | % | |||||||||||||||||
| Other | 278 | (0.28) | % | 516 | (0.30) | % | 961 | 0.34 | % | |||||||||||||||||
| Changes in unrecognized tax benefits | 2,239 | (2.21) | % | 1,328 | (0.77) | % | 1,957 | 0.69 | % | |||||||||||||||||
| Other | (227) | 0.22 | % | 9 | (0.01) | % | 894 | 0.32 | % | |||||||||||||||||
| Effective tax rate | $ | (5,361) | 5.30 | % | $ | (25,595) | 14.83 | % | $ | 73,610 | 25.90 | % | ||||||||||||||
(1) State taxes in California represents the majority (greater than 50 percent) of the tax effect in this category.
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities are presented below as of December 31, 2025 and 2024:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Share-based compensation | $ | 5,982 | $ | 6,394 | |||||||
| Deferred compensation | 51,963 | 48,821 | |||||||||
| Accrued bonus | 6,271 | 5,546 | |||||||||
| Accrued expenses | 11,014 | 10,783 | |||||||||
| Operating lease liabilities | 9,737 | 10,954 | |||||||||
| Net operating losses | 4,991 | 5,314 | |||||||||
| Loss contingencies | 310 | 563 | |||||||||
| Workers compensation insurance | 4,519 | 5,273 | |||||||||
Professional services expenses | 234 | 179 | |||||||||
Provision for expected credit losses | 4,655 | 8,415 | |||||||||
Sales credits | 9,694 | 5,960 | |||||||||
| Other | 1,108 | 3,995 | |||||||||
| Total deferred tax assets | $ | 110,478 | $ | 112,197 | |||||||
| Deferred tax liabilities: | |||||||||||
Intangible assets | $ | (32,994) | $ | (65,251) | |||||||
| Fixed assets | (21,015) | (8,662) | |||||||||
| Operating lease right-of-use assets | (7,277) | (8,395) | |||||||||
| Other | (4,315) | (4,060) | |||||||||
| Total deferred tax liabilities | $ | (65,601) | $ | (86,368) | |||||||
| Net deferred tax assets | $ | 44,877 | $ | 25,829 | |||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Management believes it is more likely than not that the Company will realize the benefits of its deferred tax assets.
The amount of federal net operating losses (“NOL”) carryforward that is available for use in years subsequent to December 31, 2025 is $15,136, which begins to expire by 2030. The amount of state NOL carryforward that is available for use in years subsequent to December 31, 2025 is $33,854, which begins to expire by 2036.
A summary of the changes in the amount of unrecognized tax benefits (excluding interest and penalties) for 2025, 2024 and 2023 is as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance of unrecognized tax benefits | $ | 9,449 | $ | 8,689 | $ | 6,980 | |||||||||||
| Additions based on tax positions related to the current year | — | 978 | 1,873 | ||||||||||||||
| Additions based on tax positions of prior years | 2,285 | 266 | 491 | ||||||||||||||
| Reductions due to lapse of applicable statute of limitation | (1,155) | (484) | (655) | ||||||||||||||
| Ending balance of unrecognized tax benefits | $ | 10,579 | $ | 9,449 | $ | 8,689 | |||||||||||
At December 31, 2025, if recognized, approximately $12,705 net of $2,892 of temporary differences would affect the effective tax rate (including interest and penalties).
The Company recognizes interest related to unrecognized tax benefits in income tax expense (benefit). The Company had approximately $5,015, $2,861 and $1,942 of accrued interest related to unrecognized tax benefits at December 31, 2025, 2024 and 2023, respectively. The amount of interest expense recognized in 2025, 2024 and 2023 was $2,153, $920 and $552, respectively.
The Company is subject to taxation in the U.S. and various states and foreign jurisdictions. With few exceptions, as of December 31, 2025, the Company is no longer subject to state, local or foreign examinations by tax authorities for tax years before 2011, and the Company is no longer subject to U.S. federal income or payroll tax examinations for tax years before 2022.
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented in subsequent years. The Company has assessed its impact on the consolidated financial statements and determined there was no material impact to income tax expense (benefit) or the effective tax rate as of December 31, 2025.
The Company believes its liability for unrecognized tax benefits and contingent tax issues is adequate with respect to all open years. Notwithstanding the foregoing, the Company could adjust its provision for income taxes and contingent tax liability based on future developments.
Income taxes paid (net of refunds) during the years ended December 31, 2025, 2024 and 2023 by jurisdiction were as follows:
| 2025 | 2024 | 2023 | |||||||||||||||
U.S. federal | $ | 5,265 | $ | 21,600 | $ | 58,500 | |||||||||||
U.S. state and local | |||||||||||||||||
California | 1,323 | 1,977 | 5,178 | ||||||||||||||
Texas | 720 | — | — | ||||||||||||||
Other (1) | 398 | 4,365 | 14,325 | ||||||||||||||
Foreign | 142 | 210 | 253 | ||||||||||||||
Total income taxes paid, net | $ | 7,848 | $ | 28,152 | $ | 78,256 | |||||||||||
(1) The amount of income taxes paid during the year does not meet the 5% disaggregation threshold.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 16, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 24, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.