deductible
adjective
, dē-\
Definition of deductible
(Entry 1 of 2)
deductible
nounDefinition of deductible (Entry 2 of 2)
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Other Words from deductible
Adjective
\
noun
Examples of deductible in a Sentence
Adjective
The trip was deductible as a business expense.Noun
I have an insurance policy with a $1,000 deductible.Recent Examples on the Web: Adjective
In lieu of flowers, the family asks that tax-deductible donations be sent to the The Black Group, 6880 Wavecrest Way, Sacramento, CA 95831. — Cathie Anderson, sacbee, "Carol McNeal, who built a library of black experience at Sacramento bookstore, dies at 86," 10 July 2018 The vessel at The Mart Dock in downtown Muskegon is now a dedicated memorial and community center, run on a shoestring budget with small tax-deductible donations. — Phoebe Wall Howard, Detroit Free Press, "Ship that landed on D-Day, then hauled autos, now a museum in Muskegon," 24 May 2018 Recovery Connections got to keep its charitable solicitation license and nonprofit status, which allows Warren to continue to collect tax-deductible donations from businesses and the public. — Amy Julia Harris And Shoshana Walter, charlotteobserver, "Drug users got exploited. Disabled patients got hurt. One woman benefited from it all. | Charlotte Observer," 21 May 2018 Fifty dollars from each ticket goes to the global safe-surgery organization Lifebox as a tax-deductible donation. — Bethany Ao, Philly.com, "7 days of things to do in Philadelphia from May 13 to 19," 9 May 2018 Those who want to join the race for the rink can send tax-deductible donations to the Friends of Hales Corners Park & Pool, 5811 S. 121st St., Hales Corners, WI 53130. — Jane Ford-stewart, Milwaukee Journal Sentinel, "Fundraising for an Olympic-sized ice rink in Hales Corners is almost over," 30 Apr. 2018 Manufacturers give drugs away, run assistance programs to cover co-pays for private insurance or help others, like Olive-McCoy, by making tax-deductible donations to charities that cover out-of-pocket costs and insurance premiums. — Carolyn Y. Johnson, chicagotribune.com, "Mother, wife, million-dollar patient: Keeping her alive is a full-time job - and good business for drug companies," 26 Apr. 2018 Before last year’s tax law, parking and transportation benefits were deductible for for-profit employers. — Laura Saunders, WSJ, "Treasury Softens Parking-Tax Hit for Churches, Nonprofits," 10 Dec. 2018 The money employers put in the accounts is tax-free to workers and tax-deductible for the company. — Ricardo Alonso-zaldivar, The Seattle Times, "Trump administration unveils health options for small firms," 22 Oct. 2018Recent Examples on the Web: Noun
This chart shows that, over the past decade, the size our insurance deductibles have skyrocketed. — Dylan Scott, Vox, "This chart explains why Americans are so angry about health care," 5 Oct. 2018 The balance in this account is used to reduce your deductible in the event of a claim. — Brett Martin, Popular Mechanics, "7 Ways To Save Money on Your Home Insurance," 3 May 2016 The proposal would require all U.S. residents be covered with no copays and deductibles for medical services. — Brooke Singman, Fox News, "Bernie Sanders' 'Medicare for all' bill estimated to cost $32.6T, new study says," 31 July 2018 Health care should be free at the point of use Everything covered under Medicare-for-all will be provided without cost, meaning no fees, no copays, and no deductibles. — Tim Higginbotham And Chris Middleman, Vox, "“Medicare-for-all” means something. Don’t let moderates water it down.," 13 July 2018 FSAs got their start as a workplace perk through the Revenue Act of 1978, which allowed employees to set aside tax-free dollars to pay for medical expenses like deductibles and coinsurance. — Janet Adamy, WSJ, "Why Santa Plans to Leave Ice Packs, Bandages and a Defibrillator in Your Stocking," 23 Dec. 2018 But other provisions of the plan are also expected to drive up spending, with coverage for nearly 30 million uninsured Americans, no copays and no deductibles and improved benefits on dental, vision and hearing. — Brooke Singman, Fox News, "Bernie Sanders' 'Medicare for all' bill estimated to cost $32.6T, new study says," 31 July 2018 Last year, lawmakers cut funding for the program, which uses Medicaid money to allow low-income senior citizens and the disabled to pay for Medicare Part B premiums, copays, and deductibles. — Ruth Bruno, courant.com, "Seven New State Laws That Took Effect July 1," 3 July 2018 Money deposited in HSAs is tax-deductible, grows tax-free and can be used without owing tax to pay for medical expenses. — Michelle Andrews, Washington Post, "Don’t Get Tripped Up By The IRS’ Tweak To Health Savings Accounts," 3 Apr. 2018These 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.
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More Definitions for deductible
deductible
adjectiveFinancial Definition of 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
adjective
English Language Learners Definition of deductible
(Entry 1 of 2)
deductible
nounEnglish Language Learners Definition of deductible (Entry 2 of 2)
See the full definition for deductible in the English Language Learners Dictionary
deductible
adjective
\
Legal Definition of deductible
(Entry 1 of 2)
Other Words from deductible
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noun
deductible
nounLegal Definition of deductible (Entry 2 of 2)
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