Definition of Tax deduction:
Fixed amount or percentage permitted by taxation authorities that a tax payer can subtract from his or her adjusted gross income to arrive at the taxable income. Deductions typically include allowances for home mortgage payment, home repair expenses, and higher study costs, etc. Not to be confused with deductible.
How to use Tax deduction in a sentence?
- If you can get a big tax deduction by doing something that can be just as valuable as the profit you may get.
- Roxanne waiting patiently to receive a signed receipt from the Goodwill shop worker for her donation so that she would have proof for the tax deduction when she filed her yearly tax returns.
- The millionaire only used his frequent donations to his charity foundation to get a tax deduction and improve his image.
Meaning of Tax deduction & Tax deduction Definition