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

However, since then, the One Big Beautiful Bill Act was signed into law, giving a temporary enhanced tax deduction for seniors and weighing on Social Security’s overall finances.

From MarketWatch • Jun. 5, 2026

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

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

First, a tax deduction for all education and training after high school.

From State of the Union Address by Clinton, William Jefferson