A tax deduction is an amount allowed against your gross income in order to arrive at your taxable income. For example, you recover your cost in income producing property through yearly tax deductions by depreciating the property; that is, by deducting some of your cost on your tax return each year. Other examples are your standard or itemized deductions and your exemption deductions.
A part of a person's or a business's total expenditures that can be subtracted in determining taxable income.
Items subtracted from your income to arrive at your taxable income. Examples are educator expenses, IRA contributions, moving expenses, and the standard deduction or itemized deductions
A form of indirect public financing used in Arizona, California, Hawaii, North Carolina, and Oklahoma as a way of encouraging small individual contributions. For example, Oklahoma offers tax deductions of up to $100 for contributions to candidates and political parties. From 1971 until 1986, when it was repealed, a similar provision was part of federal income-tax law.
amount that a person or business can subtract from their taxable income.