Nondeductible Tax

Nondeductible Tax

A tax that is not allowed as a deduction on one's federal tax return. Income taxes paid to state and local authorities are deductible, but sales taxes (under most circumstances) are nondeductible.
References in periodicals archive ?
That provision levies a 40% nondeductible tax on the annual value of health plan costs for employees that exceed $10,200 for single coverage or $27,500 for family coverage in 2018.
But if an employer wants to continue providing coverage at a level where the excise tax kicks in, the coverage will cost much more because of the addition of this new nondeductible tax.
22) This section imposes an additional nondeductible tax equal to 10 percent of the portion of any distribution from a qualified retirement plan that is includable in the taxpayer's gross income.
Unlike the TAC, the Circuit Court found that the SBT is a form of value-added tax, not a nondeductible tax measured by all or a portion of income or gross receipts.
This is a 15% nondeductible tax on total retirement distributions to an individual, during any one calendar year, in excess of a predetermined amount adjusted for inflation ($155,000 for 1996).