Definition of deductible
:allowable as a deduction
- expenses that are deductible from taxable income
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Examples of deductible in a Sentence
The trip was deductible as a business expense.
Recent Examples of deductible from the Web
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Houston mayor Sylvester Turner has also established the Hurricane Harvey Relief Fund to accept tax-deductible relief donations.
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Beginning with the 2018-2019 school year, according to officials, the district will offer a high-deductible plan with a Health Savings Account (HSA) for employees for the first time.
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My book exposed a grubby secret of American higher education: that the rich buy their under-achieving children’s way into elite universities with massive, tax-deductible donations.
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Contributions aren’t deductible, but withdrawals in retirement are tax-free.
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The value of workplace insurance is tax-free for employees and tax-deductible for employers.
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Mortgage interest is deductible, and Frank and Sharon itemize their deductions.
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For tax-deductible film donations, please visit: www.documentary.org/project/we-go-higher.
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But their deductible would be more than half their annual income.
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
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
Examples of deductible in a Sentence
I have an insurance policy with a $1,000 deductible.
Recent Examples of deductible from the Web
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At the top of most lists is ensuring federal payment of subsidies to insurers to pay the out-of-pocket expenses — such as deductibles and copayments — to protect customers with the lowest incomes.
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Our healthcare plan will lower premiums & deductibles – and be great healthcare!
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These payments reimburse insurers for lowering deductibles and other out-of-pocket expenses for customers.
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But Part B, which covers physicians, requires a monthly premium based on income, as does prescription coverage under Part D. A and B charge enrollees deductibles and co-pays, as do some Part D plans.
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The nonpartisan number crunchers also estimated that cutting off payments that now reduce copays and deductibles for people of modest incomes would add $194 billion to federal deficits over a decade.
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As a result, premiums and deductibles have soared for the 9m buyers who earn too much to receive government subsidies.
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In fact, other studies have shown that workers' contribution to their own health care, in the form of deductibles and co-pays, is also up.
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These are subsidies payable directly to insurers that cover deductibles and co-pays for approximately 6 million families with incomes below 250% of the poverty line.
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
1929
Other Economics Terms
Financial Definition of DEDUCTIBLE
deductible
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
play
adjective
Definition of deductible for English Language Learners
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: able to be subtracted from an amount of money
deductible
noun
Definition of deductible for English Language Learners
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: 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
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
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