Definition of deduction
1a : an act of taking away deduction of legitimate business expensesb : something that is or may be subtracted deductions from his taxable income
2a : the deriving of a conclusion by reasoning based on intuition rather than deduction; specifically : inference in which the conclusion about particulars follows necessarily from general or universal premises (see 1premise 1) — compare inductionb : a conclusion reached by logical deduction made the deduction that the suspect had been at the scene of the crime
Examples of deduction in a Sentence
The government is offering new tax deductions for small businesses.
What is your pay after the deductions have been taken out?
His guess was based on intuition rather than deduction.
Our deduction was based on the information given to us at the time.
It was a logical deduction.
Recent Examples of deduction from the Web
At the same time, the Republican leader hopes to placate the right by further easing the existing law's insurance mandates and providing higher tax deductions for the health-savings accounts that conservatives favor, several Republicans said.
Democrats wanted to repeal the small business tax deduction for limited liability companies and other pass-through entities, which would generate about $1 billion a year.
Contributor: Beth Moody, CFP® Tip #15: Avoid Capital Gains Most everyone knows about the tax benefits that come with home ownership such as the deductions for mortgage interest and property taxes.
There are also deductions available for tuition, fees, and student loan interest depending on eligibility.
But the tax code is filled with so many exemptions, deductions and credits that most corporations pay a much lower rate.
Harris regularly claimed false deductions and federal tax withholdings for her clients to generate unnecessarily large refunds to which they were not entitled, the U.S. Attorney's Office said in a news release Thursday (June 15).
Federal tax rules offer deductions for mortgage interest, property tax, insurance premiums and many other expenses on second homes.
Some Kansans actually ended up paying more in taxes overall under Brownback because deductions were eliminated and other taxes were raised to pay for Brownback’s tax cuts.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deduction'. Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Using deduction Beyond Math
To deduct is simply to subtract. A tax deduction is a subtraction from your taxable income allowed by the government for certain expenses, which will result in your paying lower taxes. Your insurance deductible is the amount of a medical bill that the insurance company makes you subtract before it starts to pay--in other words, the amount that will come out of your own pocket. But deduction also means "reasoning", and particularly reasoning based on general principles to produce specific findings. Mathematical reasoning is almost always deduction, for instance, since it is based on general rules. But when Dr. Watson exclaims "Brilliant deduction, my dear Holmes!" he simply means "brilliant reasoning", since Sherlock Holmes's solutions are based on specific details he has noticed rather than on general principles.
DEDUCTION Defined for English Language Learners
Definition of deduction for English Language Learners
: the act of taking away something (such as an amount of money) from a total
: something (such as an amount of money) that is or can be subtracted from a total
: the act or process of using logic or reason to form a conclusion or opinion about something : the act or process of deducing something
DEDUCTION Defined for Kids
Legal Definition of deduction
1 : an amount allowed by tax laws to be subtracted from income in order to decrease the amount of income tax due — see also Internal Revenue Code — compare credit, exclusion, exemption business deduction : a deduction usually taken from gross income that is allowed for losses or expenses attributable to business activities or to activities engaged in for profit charitable deduction : a deduction allowed for a contribution to a charity usually that is qualified under the tax law (as sections 170 and 2055 of the Internal Revenue Code) dependency deduction : a deduction allowed to be taken in a set amount for a qualified dependent (as under sections 151 and 152 of the Internal Revenue Code) itemized deduction : a deduction for a specifically recorded item that is allowed to be taken from adjusted gross income if the total of such deductions exceeds the standard deduction marital deduction 1 : a deduction allowed under the Internal Revenue Code to be taken from the gross estate that amounts to the value of any property interest which is included in the estate and which was given by a decedent to the surviving spouse provided that the interest is not terminable during the life of the survivor 2 : a deduction allowed under the Internal Revenue Code of the value of any gift inter vivos subject to gift tax by one spouse to the other personal deduction : a deduction allowed to be taken for losses or expenses that are not necessarily attributable to a business activity or an activity engaged in for profit personal exemption deduction : a deduction for an amount set by tax law that under section 151 of the Internal Revenue Code includes the dependency deduction standard deduction : a deduction of an amount set by tax law that is allowed to be taken from adjusted gross income unless the taxpayer elects to itemize deductions
2 in the civil law of Louisiana : an item of property or an amount that an heir has a right to take from the mass of the succession before any of it is partitioned (as for a debt owed by the deceased to the heir)
Learn More about deduction
See words that rhyme with deduction Thesaurus: All synonyms and antonyms for deduction Spanish Central: Translation of deduction Nglish: Translation of deduction for Spanish speakers Britannica English: Translation of deduction for Arabic speakers Britannica.com: Encyclopedia article about deduction
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