deductible

[dih-duhk-tuh-buhl]

adjective

1. capable of being deducted.

2. allowable as a tax deduction.

   Charitable contributions are deductible expenses.

noun

1. the amount for which the insured is liable on each loss, injury, etc., before an insurance company will make payment.

   The deductible on our medical coverage has been raised from $50 to $100 per illness.

deductible

/ dɪˈdʌktɪbəl /

adjective

1. capable of being deducted

2. short for tax-deductible

noun

1. Also called (in Britain and certain other countries): excess. insurance a specified contribution towards the cost of a claim, stipulated on certain insurance policies as being payable by the policyholder

Other Word Forms

• deductibility noun
• nondeductibility noun
• nondeductible adjective
• undeductible adjective

Word History and Origins

Origin of deductible¹

First recorded in 1855–60; deduct + -ible

Example Sentences

The federal government has continuously increased subsidies to insurance companies to hide ObamaCare’s affordability failures and spare Americans on ObamaCare from its skyrocketing costs—while everyone’s premiums, copayments and deductibles have soared.

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As deductibles increase and “premiums start edging up to five figures, a lot of people start to go, ‘Wouldn’t I be better off putting this money away for a rainy-day fund or investing it?’”

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Even if you have high copays or deductibles, your out-of-pocket share with insurance is still likely to be cheaper than paying the entire cost yourself, even at a substantial discount.

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The interest payments on a cash-out refinancing are deductible if the money is used for home improvements, which is also the case for interest on a home-equity line of credit.

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Next year, the threshold for deductibles rises to $1,700 for individual plans and $3,400 for family coverage.

Read more on Barron's