tax deduction

American  

noun

1. an expenditure that is deducted from taxable income.

---

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.

---

Example Sentences

See Examples For:

tax deduction

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

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

Glenn had said that provisions in last year’s One Big Beautiful Bill Act, which included a temporary enhanced tax deduction for seniors, would have a material impact on the trust fund’s finances.

From MarketWatch ● Feb. 12, 2026

The cap on the state and local tax deduction, or SALT, increased from $10,000 to $40,000.

From The Wall Street Journal ● Jan. 25, 2026

I propose a landmark $30-billion college opportunity tax cut—a middle-class tax deduction for up to $10,000 in college tuition costs.

From State of the Union Address by Clinton, William Jefferson