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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

The funds allow people to contribute a chunk of money and take a tax deduction, then donate to charities over time through grant recommendations.

From The Wall Street Journal ● May 15, 2026

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

The new tax deduction for overtime pay is working overtime.

From The Wall Street Journal ● Apr. 4, 2026

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

From MarketWatch ● Feb. 12, 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

Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023