Tax deduction is a reduction of income that is able to be taxed, and is commonly a result of expenses, particularly those incurred to produce additional income. The difference between deductions, exemptions and credit is that deductions and exemptions both reduce taxable income, while credits reduce tax.
Usage examples of "tax deduction".
Without fundraisers and patrons eyeing the tax deduction, it would have to close its doors.
When things are good it makes a huge profit, and when times are bad it just makes a profit, and when things go to hell it takes a tax deduction.
Remo knew from the location of the wound and the sprawl of the body that Higbe Muckley had taken his last tax deduction.
Even worse, we had apparently failed to take the full tax deduction for our losses.
The hotel charged the car off to public relations, a tax deduction.