Definition, Meaning & Synonyms
tax-allowance
noun
/taks əˈlaʊəns/
Definition
A tax allowance is a specific amount of money that can be deducted from gross income for tax purposes.
Examples
- The tax-allowance for individuals can vary based on their filing status.
- Many taxpayers look for various tax allowances to minimize their tax burden.
- Understanding tax allowances can help in more efficient tax planning.
Meaning
It represents a portion of income that the government allows to be excluded from taxable income, which reduces the total tax liability for an individual or organization.
Synonyms
- tax deduction
- tax exemption
- allowance
