Deduction

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Deduction

An expense that is allowable as a reduction of gross taxable income by the IRS e.g., charity donations.

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.

deduction

An expenditure that may legally be used to reduce an individual's income-tax liability. Potential deductions of particular interest to investors are expenditures for subscriptions to financial publications, a lock box for storing securities, and computer software for investment-related activities. These deductions, combined with employee business expenses and miscellaneous deductions, may be subtracted from a person's taxable income only to the extent their total exceeds 2% of that person's adjusted gross income. Interest paid on loans used to finance investments is deductible only against investment income. Also called itemized deduction, tax deduction. See also charitable contribution deduction.

Deduction.

A deduction is an amount you can subtract from your gross income or adjusted gross income to lower your taxable income when you file your income tax return.

Certain deductions, such as money contributed to a traditional IRA or interest payments on a college loan, are available only to taxpayers who qualify for these deductions based on specific expenditures or income limits, or both.

Other deductions are more widely available. For example, you can take a standard deduction, an amount that's fixed each year. And if your expenses for certain things, such as home mortgage interest, real estate taxes, and state and local income taxes, total more than the standard deduction, it may pay for you to itemize deductions instead.

However, if your adjusted gross income is above the limit Congress sets for the year, you may lose some of or all these deductions.

Deduction

An amount that may be subtracted from income that is otherwise taxable.
References in classic literature ?
Put the figures and deduce the misery, you know; and put the other figures and deduce-- and so on.
I might go on prosing more and more, I might dive much deeper, and disclose other thoughts, propose questions the reader might be puzzled to answer, and deduce arguments that might startle his prejudices, or, perhaps, provoke his ridicule, because he could not comprehend them; but I forbear.
What his movements were after that I had largely to deduce from the facts of the situation, for I could scarcely see him in the dim starlight.
From which we may deduce mathematically this corollary: The statesman first looms up in the sphere of higher salaries; and also this second and not less logical and important corollary: Directors-general may be statesmen.
You have made inquires into the history of my unhappy brother, and you now pretend to deduce this knowledge in some fanciful way.
If it could be shown that our domestic varieties manifested a strong tendency to reversion,--that is, to lose their acquired characters, whilst kept under unchanged conditions, and whilst kept in a considerable body, so that free intercrossing might check, by blending together, any slight deviations of structure, in such case, I grant that we could deduce nothing from domestic varieties in regard to species.
Indeed it was not difficult to reconcile to the rule of right an action which it would have been impossible to deduce from the rule of wrong.
It would not require a Sherlock Holmes to deduce that you have been cooking over a camp-fire, to say nothing of trying out seal-blubber.
It is quite likely that, if we knew more about animal bodies, we could deduce all their movements from the laws of chemistry and physics.
From these and similar premises, many true Britons in the lowest spirits deduce that the times are levelling times, except in the article of high roads, of which there will shortly be not one in England.
I do not know that the relation of my disasters will be useful to you; yet, when I reflect that you are pursuing the same course, exposing yourself to the same dangers which have rendered me what I am, I imagine that you may deduce an apt moral from my tale, one that may direct you if you succeed in your undertaking and console you in case of failure.
It is an essential part of every national character to pique itself mightily upon its faults, and to deduce tokens of its virtue or its wisdom from their very exaggeration.