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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

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tax deduction

In some states, families can get a tax deduction for contributions to 529 accounts.

From MarketWatch ● Jul. 6, 2026

While you don’t claim a tax deduction for a QCD, by not including the gift in taxable income you effectively get a full deduction.

From Barron's ● May 9, 2026

The new tax deduction for overtime pay is working overtime.

From The Wall Street Journal ● Apr. 4, 2026

Take the “senior bonus” tax deduction — a new, straightforward deduction for taxpayers ages 65 and up.

From MarketWatch ● Jan. 26, 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