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

Glenn had said that provisions in last year’s One Big Beautiful Bill Act, which included a temporary enhanced tax deduction for seniors, would have a material impact on the trust fund’s finances.

From MarketWatch

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

From MarketWatch

And if you are running a business, various changes brought about under the act will increase your available tax deductions for 2025, possibly drastically.

From MarketWatch

Take the “senior bonus” tax deduction — a new, straightforward deduction for taxpayers ages 65 and up.

From MarketWatch

From April, sole traders who earn more than £50,000 will be required to use MTD to record their business expenses and tax deductions.

From BBC