Tax Deduction
/ˈtæks dɪˌdʌkʃən/
Definitions
- (n.) An amount subtracted from gross income to determine taxable income, reducing the overall tax liability.
Charitable contributions are allowed as a tax deduction on your annual return.
Forms
- tax deductions
Related terms
See also
Commentary
Tax deductions lower taxable income by specified amounts; distinct from tax credits which reduce tax liability directly.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.