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

While you don’t claim a tax deduction for a QCD, by not including the gift in taxable income you effectively get a full deduction.

From Barron's • May 9, 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

“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

I propose a landmark $30-billion college opportunity tax cut—a middle-class tax deduction for up to $10,000 in college tuition costs.

From State of the Union Address by Clinton, William Jefferson