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

See Examples For:

tax deduction

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

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

I make good money, max out every year and want that tax deduction as I near retirement.

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