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

See Examples For:

tax deduction

Earlier in our careers, we chose traditional IRAs because the tax deduction made the most sense at the time.

From MarketWatch ● Aug. 19, 2026

Last month, the IRS published its final list of more than 70 jobs whose workers may get a tax deduction on the tips they earn.

From MarketWatch ● May 14, 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

Funding a new DAF with highly appreciated shares of stock allows the donor to avoid capital-gains taxes while also taking a tax deduction.

From The Wall Street Journal ● Apr. 6, 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 William Jefferson Clinton

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