Definition, Meaning & Synonyms
tax-deductible
adjective
/tæks dɪˈdʌktəbl/
Definition
Tax-deductible refers to expenses that can be deducted from a person’s or business’s taxable income, thereby reducing the amount of tax owed.
Examples
- Donations to qualified charities are often tax-deductible.
- Many business expenses, such as office supplies and travel costs, are tax-deductible.
- Consulting a tax professional can help you identify which expenses are tax-deductible.
Meaning
When you have tax-deductible expenses, you can subtract these amounts from your total income before calculating taxes, which can lower the total taxes you need to pay.
Synonyms
- deductible
- allowable
- exempt
