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).
The distinction between a direct income tax and a franchise tax measured by income may be significant in this connection; however, most states include both kinds of taxes in the statutory definition of a nondeductible tax.
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.