tax deduction

noun

1. an expenditure that is deducted from taxable income.

tax deduction

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 .

Example Sentences

Churches don’t have to disclose their donors to the IRS, so donors could seek to influence elections while remaining anonymous — and get a tax deduction for their contributions.

From Los Angeles Times

Many taxpayers are "going to think they get a tax deduction, and so maybe they will be more inclined to finance a car…and so they'll be making bad economic decisions because they don't really understand the way this benefit or lack thereof works," she added.

From Salon

Of that $800, you're only saving a fraction because it's a tax deduction, not a credit — at a 20% tax rate, you'd save $160.

From Salon

An exception could be if a law ends up being written in a way that allows for the tax deduction to be taken as a so-called above-the-line adjustment, which essentially allows the deduction to be taken in addition to the standard deduction.

From Salon

At the forum, voters asked about Jones’ plan to restore the state and local tax deduction, the potential expansion of Medicare to include long-term care, Jones’ accomplishments in his first terms and Jones’ vision for comprehensive immigration reform.

From Salon