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

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

To get the upfront tax deduction, the donor cedes legal control of the donated funds to the DAF sponsor.

From The Wall Street Journal • May 1, 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

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

From MarketWatch • Jan. 26, 2026

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

From State of the Union Address by Clinton, William Jefferson