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

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

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 • Feb. 12, 2026

The cap on the state and local tax deduction, or SALT, increased from $10,000 to $40,000.

From The Wall Street Journal • Jan. 25, 2026

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

From State of the Union Address by Clinton, William Jefferson