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tax deduction

American

noun

an expenditure that is deducted from taxable income.

tax deduction Cultural

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.

Example Sentences

Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.

Lack of planning and misconceptions around a new $6,000 senior tax deduction could lead to missed tax savings.

From Barron's • Apr. 25, 2026

“More people will be able to deduct their charitable gifts in 2026 because we now have a tax deduction for non-itemizers,” he said.

From MarketWatch • Apr. 11, 2026

The new tax deduction for overtime pay is working overtime.

From The Wall Street Journal • Apr. 4, 2026

At President Trump’s behest, last year’s megabill included a tax deduction of up to $6,000 for people 65 and over.

From The Wall Street Journal • Feb. 18, 2026

We should support Americans who tithe and contribute to charities, but don't earn enough to claim a tax deduction for it.

From State of the Union Address by Clinton, William Jefferson

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023