Deductible

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Deductible

An amount or period which must be deducted before an insurance payout or settlement is calculated.

Deductible

1. Able to be taken off of one's tax liability. See: Deduction.

2. In insurance, the amount that a policyholder must pay for a claim before the insurance company will make any payments at all. That is, if an insured event happens, the policyholder is responsible for covering damages up to a certain dollar amount, at which point the insurance company begins coverage. Some insurance policies have an annual deductible; that is, if two insured events happen in a given year, the deductible is only applied once. Other policies have a per event deductible; that is, the deductible applies each time a claim is made. Generally, the higher one's deductible is, the less one pays in premiums on the policy.

Deductible.

A deductible is the dollar amount you must pay for healthcare, damage to your property, or any other insurable claim before your insurance company begins to cover the cost of the bill.

For example, if you have a health insurance policy with an annual $300 deductible, you have to spend $300 of your own money before your insurer will pay whatever portion of the rest of the year's bills it has agreed to cover.

However, in some types of policies, the deductible is per event, not per year. Generally speaking, the higher the deductible you agree to pay, the lower your insurance premiums tend to be. However, the deductible for certain coverage is fixed by the insurance provider. That's the case with Original Medicare.

References in periodicals archive ?
For qualified businesses other than an SSTB, the deductible amount for Group III taxpayers is 20% of QBI up to the W&C limitation.
Assume that the couple in Exhibit 5 (with taxable income of $350,000 and a tentative deductible amount after limitation of $23,400) has net capital gain of $5,000 and REIT dividends of $3,000.
"As the economy continues to be in a downturn and the unemployment rate is high in Nevada, what we speculate is that people may be opting to increase their deductible amount so as to reduce their premium amount," Jain said.
However, in most cantons, the maximum deductible amount may not exceed 20 per cent of your salary Payment receipts must be submitted If you are supporting a parent or relative because they are living in poverty (usually abroad), the amount given is tax deductible in most cases Proof of their situation and receipts must be provided and the tax inspector will make a decision, which can be challenged if negative
The deductible amount is reduced by the amount by which start-up or organizational expenditures exceed $50,000; in other words, no first-year deduction (beyond the amount of amortization for the first year) is allowed if start-up expenses equal or exceed $55,000.
he first step on the personal income tax side will take place from next year onwards when, amongst others, the tax deductible amount for contributions towards retirement funding can be as much as 22.5% of a person's taxable income with an annual limit of N$200,000.
Consider a disappearing deductible insurance policy, which is an insurance contract that provides for a decreasing deductible amount as the size of the loss increases.
The subrogation process is explained, and the insured is happy to hear that the insurer will attempt to recover the deductible amount in addition to the amounts paid by the company.
Before that, local tax payers will see increase in the personal tax-exemption amount and standard deductible amount, as well as deductible amounts for salary income and handicapped people, ranging NT$3,000-7,500, when they file tax returns next May for their 2009 incomes.
In addition, 83% are concerned about increased premiums and expenses no longer covered by their plan; 81% about the addition of or increases in deductible amount; and 79% about the addition of or increases in their copay.
The deductible amount will be $3 for each one-way trip and $6 for each round trip--with a cap per calendar-month of $18, or six one-way trips or three round trips, whichever comes first.
Educator expenses * $250 * Must be substantiated * Cannot be claimed after 2009 Contribution to May deduct 100% of compensation or the deductible Traditional IRA amount: Year Deductible Amount 2008-2009 $5,000 The deductible amount in 2008-2010 is increased by $1,000 for individuals who have attained age 50 before the end of the tax year.