Tax-deductible


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Related to Tax-deductible: tax-deferred

Tax-deductible

The effect of creating a tax deduction, such as charitable contributions and mortgage interest.

Deduction

An amount of money that one may subtract from one's gross annual income when calculating one's income tax liability. A common misconception about tax deductions is that they represent a dollar-for-dollar reduction of one's tax liability. Rather, a deduction removes a certain dollar amount from the income the IRS uses to calculate the percentage of one's income that is owed in taxes. Common deductions are charitable contributions, business expenses, and interest on mortgages. See also: Tax credit.
References in periodicals archive ?
Otherwise, your tax-deductible contribution may actually sponsor neutering programs in Missouri or dinner parties in Alaska.
That's why a tax-deductible, year-end donation to Heifer International represents a sound investment in the improvement of our world.
To initiate the closing process, the easement donor sends the notarized conservation easement deed with a tax-deductible charitable cash contribution to Preservation Easement Trust.
Calls for an increase in the amount of such tax-deductible contributions were voiced at a meeting the ministry held with officials at companies that have introduced defined-contribution pension plans, the officials said.
Others are considering making home improvements and/or replacing high-rate, non tax-deductible credit card debt with lower interest, tax-deductible home equity loans.
Fortunately, camps sponsored by not-for-profit organizations can use tax-deductible contributions to fund camper scholarships.
Tax-deductible money was also used to cover salaries and fund airplane tickets and lavish lunches.
Remember, donations to a tax-exempt organization may not be tax-deductible.
Suggested ticket price is $125 (your tax-deductible charitable contribution is $75 per ticket).
Finite risk insurance originally was marketed as a way to substitute tax-deductible premium dollars for a reserve fund.
If refinancing a new car loan doesn't make sense, consider paying it off' with a lower-cost, tax-deductible home equity loan.