Deduction
Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.
Also referred to as "allowable deduction". Investopedia Says:
For example, if you make $40,000 and you have a deduction for $1,000, then your taxable income is reduced to $39,000. Related Terms:
1040 Form
Audit
Charitable Donation
Home Office Expense
Income Tax
Internal Revenue Service - IRS
Non-Refundable Tax Credit
Student Loan Interest Deduction
Tax Return
Write-Off |