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

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

A collector can effectively gift a Kahlo painting — and receive a tax deduction in the process — but have the digital twin as a separate form of ownership.

From MarketWatch

If you’re over 70½ and are giving to charity, no matter your income, you’re likely best off doing a QCD above any other method of claiming a tax deduction, because it directly reduces your income.

From MarketWatch

With these funds, the donation counts toward a tax deduction in the year the money was contributed to the account, but the donor can decide which organization will receive the gift later.

From MarketWatch