Nondeductible Tax

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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 ?
Exhibit 1: AnyCo tax return and E&P information Year Taxable Tax-exempt Noncapital, Federal Distributions income income nondeductible taxes expenses * paid 1 $100,000 $3,000 $6,000 $34,000 2 (20,000) 5,000 3 200,000 2,000 15,000 61,200 $10,000 4 250,000 18,000 85,000 5 100,000 10,000 34,000 6 200,000 15,000 68,000 400,000 * E.
954(a) and (b)(5) is to take into account the approximate equivalent of taxable income (which is reduced further by otherwise nondeductible taxes attributable thereto).
Legislation enacted during 1994 substantially broadened the list of nondeductible taxes for Wisconsin tax purposes.