An expense subtracted from adjusted gross income when calculating taxable income, such as for state and local taxes paid, charitable gifts, and certain types of interest payments. also called tax deduction.

Use deduction in a sentence

A deduction based on the amount of destruction incurred during my friend's round of play was factored into his final score on his favorite game.

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When my penny-pinching boss gave a large donation to a children's charity, I couldn't help but think that he did so in order to take a large deduction on his income taxes.

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To encourage home ownership, the government allows families to write off the interest on their home mortgage as a tax deduction, lessening the amount in taxes they must pay.

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standard deduction proceeds