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

See Examples For:

tax deduction

The IRS lets homeowners take a $40,000 tax deduction on their state and local taxes.

From MarketWatch ● Oct. 8, 2026

Donors receive no tax deduction for contributions to accounts.

From MarketWatch ● Oct. 1, 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

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

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 William Jefferson Clinton