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

Analysts have said extra state and local tax deductions could help consumer spending.

From MarketWatch

Contributions are made with after-tax dollars, meaning you don’t get an up-front tax deduction, but qualified distributions later in life are entirely tax-free.

From MarketWatch

When insiders exchange their partnership units for shares in the public company, it creates large tax deductions for Andersen Group, or a “step up” in basis.

From The Wall Street Journal

Like other new tax deductions, the senior bonus is only available through 2028.

From MarketWatch

Its expensing provisions could lift business investment, and exemptions for tips and overtime and larger state-and-local tax deductions will increase take-home pay for some.

From The Wall Street Journal