tax deduction

American  

noun

1. an expenditure that is deducted from taxable income.

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tax deduction Cultural  

1. An expense, such as a charitable contribution, that can be deducted from one's taxable income. Unlike a tax shelter, a tax deduction does not necessarily take the form of an investment.

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Example Sentences

You get the upfront tax deduction, but can dole the funds out to charity over future years.

From Barron's

That way, you get the tax deduction now for the contribution, and pay taxes on the distributions later.

From Barron's

Workers may miss the nuance of tip and overtime tax deduction rules, and they may overlook other income sources the IRS counts as taxable, Brown noted.

From MarketWatch

Federal law doesn’t allow most tax deductions for businesses trafficking in controlled substances.

From The Wall Street Journal

It also expands a tax deduction for exporters that is often used by technology and aerospace companies, which Qualcomm cited in its disclosure.

From The Wall Street Journal