deductible

adjective de·duct·ible \ di-ˈdək-tə-bəl , dē- \

Updated on: 11 Apr 2018

Definition of deductible

: allowable as a deduction

expenses that are deductible from taxable income

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deductibility

play \-ˌdək-tə-ˈbi-lə-tē\ noun

See deductible defined for English-language learners

Examples of deductible in a Sentence

The trip was deductible as a business expense.

Recent Examples of deductible from the Web

The loan would still be deductible if the money goes toward building, acquiring or substantially improving the home.

— susan tompor, Detroit Free Press, "How to get the best tax deductions if you have kids, home, student loans," 5 Apr. 2018
The bundle also includes a $15 membership to the UA Alumni Association and a $5 tax-deductible donation to the university, Scott said, though students can opt out of the alumni membership and donation.

— rachel leingang, azcentral, "Want to participate in your graduation from an Arizona university? It will cost you," 28 Mar. 2018
Thompson noted all donations to Okauchee Lions Park are tax-deductible.

— evan frank, Milwaukee Journal Sentinel, "New Okauchee Lions Park pavilion expected to open in June," 28 Mar. 2018
People wishing to contribute can make tax-deductible donations to tinyurl.com/preservegary, or send a check to the Legacy Foundation, care of Gary Preservation Tour, at 1000 E. 80th Place, Suite 402N, in Merrillville.

— gregory tejeda, Post-Tribune, "Neighborhoods part of new Gary preservation tour," 2 Mar. 2018
Click here to make a tax-deductible donation to the Fund For The Needy.

— rachel lerman, The Seattle Times, "Fund For The Needy raises $1.62 million in latest community campaign," 6 Feb. 2018
Tax deductible donations can be mailed to the new nonprofit at the following address: The Tamina Cemetery and Community Project CDC, 29526 Legends Line Drive, Spring, TX 77386.

— meagan ellsworth, Houston Chronicle, "Tamina community hopes to save submerged Sweet Rest Cemetery," 21 Jan. 2018
If this is important to you, ask about the organization’s federal and state eligibility for receiving tax deductible donations.

— carmen gonzalez caldwell, miamiherald, "Before donating, carefully check to make sure that charity isn’t a scam | Miami Herald," 11 Jan. 2018
Fee-for-service Medicare still has a $1,340 deductible for hospital care, as well as a separate premium and deductible for outpatient care.

— bobby jindal, WSJ, "Republicans’ Quiet Health Victory," 21 Mar. 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deductible.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of deductible

1856

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

deductible

noun

Definition of deductible

: a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured against; also : the amount of the loss specified in such a clause

See deductible defined for English-language learners

Examples of deductible in a Sentence

I have an insurance policy with a $1,000 deductible.

Recent Examples of deductible from the Web

The damage, while expensive, was less than my insurance deductible.

— gary m. singer, Sun-Sentinel.com, "Ask a real estate pro: Can I get my neighbor to pay for her tree's damage to my house?," 6 Apr. 2018
The plans cost too much, deductibles were too high, and the number of insurers willing to sell plans was shrinking, GOP lawmakers said.

— maureen groppe, USA TODAY, "Obamacare users see system collapsing -- but say it's still working for them now," 3 Apr. 2018
Seniors enrolled in Medicare Advantage are faced with higher deductibles and copays.

— WSJ, "Medicare Advantage Not a Good Bet for Most," 29 Mar. 2018
People with high deductibles or co-pays are often hurt the most.

— zachary tracer, chicagotribune.com, "Aetna to pass along discounts as drug price scrutiny increases," 27 Mar. 2018
And the office's medical billing team can be an excellent resource for questions about co-pays, deductibles and insurance red tape.

— ashley catherine woods for ascension, Milwaukee Journal Sentinel, "Find the right primary care doctor for you and your loved ones with these 7 steps," 26 Mar. 2018
People in plans with high deductibles who buy drugs that carry large rebates will see the greatest savings, Mr. Schumacher said.

— reed abelson, New York Times, "UnitedHealthcare Says It Will Pass On Rebates From Drug Companies to Consumers," 6 Mar. 2018
Todd Gray’s troubles began when the deductible under his insurance plan shot up from $3,000 last year to $7,300 in 2018.

— sujata srinivasan, courant.com, "Rising Rx Prices Forcing Critical Choices; States May Be Last Hope For Consumers," 21 Mar. 2018
The policies are available only in New York and include no deductibles.

— nicole friedman, WSJ, "How Travelers Is Re-inventing Part of Its Business to Cater to Millennials," 21 Mar. 2018

First Known Use of deductible

1929

Other Economics Terms

actuary, compound interest, globalization, indemnity, portfolio, rentier, stagflation, usurer

Financial Definition of DEDUCTIBLE

deductible

adjective

What It Is

In the finance world, deductible is usually short for tax-deductible, which refers to an expense that reduces the amount of income that is subject to tax.

In the insurance world, a deductible is a required payment from the insured to the insurer in order to trigger coverage.

How It Works

For example, let's assume John Doe pays $10,000 for mortgage interest last year. He and his wife earned $150,000 from their jobs last year. Based on their circumstances, they can get a deduction for the mortgage interest (meaning they can deduct it from their taxable income). As a result, they must pay federal income tax on $150,000 - $10,000 = $140,000.

Anything that is deductible has a special financial value. In our example, if that mortgage interest hadn't been deductible, John Doe would have paid income tax on that $10,000 of income. If he's in the 28% tax bracket, that could amount to $2,800. Thus, the fact that mortgage interest is deductible saves him $2,800 in taxes.

Why It Matters

When things are deductible, they lower a person's tax bill, which is why taxpayers invest time in seeking out deductions and structuring transactions to maximize those deductions. There are hundreds of different types of tax deductions, though some deductions are available only to people in certain income ranges (typically under $100,000 to $150,000) and most are available only to people in certain circumstances or companies in certain industries.

Source: Investing Answers

DEDUCTIBLE Defined for English Language Learners

deductible

adjective

Definition of deductible for English Language Learners

: able to be subtracted from an amount of money

deductible

noun

Definition of deductible for English Language Learners

: an amount of money that you have to pay for something (such as having your car fixed after an accident) before an insurance company pays for the remainder of the cost

Law Dictionary

deductible

adjective de·duc·ti·ble \ di-ˈdək-tə-bəl \

legal Definition of deductible

: allowable as a deduction

—

deductibility

play \-ˌdək-tə-ˈbi-lə-tē\ noun

deductible

noun

legal Definition of deductible

: a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured against; also : the amount specified in such a clause — compare franchise 4a