tax deduction

noun

1. an expenditure that is deducted from taxable income.

tax deduction

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.

Example Sentences

You get the upfront tax deduction, but can dole the funds out to charity over future years.

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That way, you get the tax deduction now for the contribution, and pay taxes on the distributions later.

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Workers may miss the nuance of tip and overtime tax deduction rules, and they may overlook other income sources the IRS counts as taxable, Brown noted.

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Federal law doesn’t allow most tax deductions for businesses trafficking in controlled substances.

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It also expands a tax deduction for exporters that is often used by technology and aerospace companies, which Qualcomm cited in its disclosure.

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