Company: ALIT
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0001809104-25-000062
Chunk: 266

Company: Alight, Inc. / Delaware
Filing Date: 2025-02-27
Form: 10-K
Item: Item 7
Chunk 266
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 rate$(31)21 %$(71)21 %$(26)21 %State income taxes, net of federal benefit2 (1)%(1)— %3 (2)%Jurisdictional rate differences5 (3)%(4)1 %5 (4)%Changes in valuation allowances26 (18)%14 (4)%17 (14)%Benefit of income not allocated to the Company— — %3 (1)%6 (5)%Income in separate U.S. tax consolidations1 (1)%1 — %15 (12)%Adjustments based on filed tax returns(2)1 %— — %(1)1 %Non-deductible expenses6 (4)%45 (13)%32 (27)%Tax credits(17)11 %(14)4 %(7)6 %Change in uncertain tax positions— — %— — %(27)22 %Other2 (1)%7 (2)%(1)1 %Total income tax expense (benefit)$(8)5 %$(20)6 %$16 (13)%The Company’s effective tax rate for the year ended December 31, 2024, year ended December 31, 2023, and year ended December 31, 2022 was 5%, 6% and 13%, respectively.The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to its organizational structure. The Company is taxed as a corporation and is subject to corporate federal, state, and local taxes on the income allocated to it from Alight Holdings, based upon the Company’s economic interest in Alight Holdings, and any stand-alone income or loss generated by the Company. Alight Holdings and certain subsidiaries combine to form a single entity taxable as a partnership for U.S. federal and most applicable state and local income tax purposes. As such, Alight Holdings is not subject to U.S. federal and certain state and local income taxes. The partners of Alight Holdings, including the Company, are liable for federal, state, and local income taxes based on their allocable share of Alight Holdings’ pass-through taxable income, which includes income of Alight Holdings’ subsidiaries that are treated as disregarded entities separate from Alight Holdings for income tax purposes. The effective tax rate for the year ended December 31,