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 ?
The best way to deal with the problem will be to introduce a nondeductible tax on those who employ those in excessive numbers.
Starting in 2018, the Affordable Care Act imposes a 40% nondeductible tax on employer-sponsored coverage that exceeds certain thresholds: $10,200 for employee-only and $27,500 for family coverage.
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.
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).