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

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

I make good money, max out every year and want that tax deduction as I near retirement.

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