On taxes what does add back mean?

Answer 1

In tax terminology, "add back" refers to the process of including certain expenses or deductions that were previously subtracted from income when calculating taxable income. This is often done to adjust financial statements to reflect a more accurate taxable income for a specific tax purpose. For example, certain non-deductible expenses or one-time charges may be added back to income to ensure compliance with tax regulations or to align with tax reporting requirements.