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

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

“More people will be able to deduct their charitable gifts in 2026 because we now have a tax deduction for non-itemizers,” he said.

From MarketWatch • Apr. 11, 2026

Funding a new DAF with highly appreciated shares of stock allows the donor to avoid capital-gains taxes while also taking a tax deduction.

From The Wall Street Journal • Apr. 6, 2026

At President Trump’s behest, last year’s megabill included a tax deduction of up to $6,000 for people 65 and over.

From The Wall Street Journal • Feb. 18, 2026

A tax deduction was an expression of social co- participation, since society needed more people, better educated youth, a stable framework of family life.

From The Civilization of Illiteracy by Nadin, Mihai