Dictionary Home »
Legal Definitions » deduction
deduction legal definition
noun
A monetary amount that a
taxpayer is permitted by law or regulation to subtract from income when
determining income tax.
itemized deduction
An expense, such as state and local taxes paid, or annual
interest on a mortgage, that is listed on a tax return as a deduction. Includes
charitable deductions.
standard deduction
A dollar amount that a taxpayer is permitted by law to
subtract from taxable income in lieu of listing itemized deductions.
Learn more about deduction