definition of deduct
5ad97370945836a9da544c26fb45f342
deduct deduct. 1  to take away, as from a sum or amount: Once you deduct your expenses, there is nothing left. 2  detract; abate (usually followed by from): The rocky soil deducts from the value of his property.
e1d4a00881734dfdffc5464ba31443a1
deduction 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
e03d5026062c760d394fe9bb6b043971
Subtracting Deductions Subtracting Deductions. After they calculate their deductions and exemptions, taxpayers subtract that amount from their gross income. The sum is their taxable income. Deductions reduce taxable income; credits reduce tax. There are four principal types of deductions: Business deductions: These are claimed as part of a business’s income tax.
ac58fcdd3d1954acc6a1ea2c4baa4c70
What does it mean to be 'tax deductible' and why does it matter? Being tax deductible means that you can deduct the expense (a charitable gift, your mortgage interest, business expenses, etc.) from your income on your tax return. If you give $100 to charity, that will not reduce your taxes by $100. It will reduce your taxable income by $100.
202f7f015f631985b6f78dac43a30f79
What is a 'Dividends Received Deduction - DRD' The dividends received deduction (DRD) is an American federal tax deduction applicable to certain corporations that receive dividends from related entities. The purpose of this deduction is to alleviate the potential consequences of triple taxation.
739aba770d88dd3745077f2904c75bd6
Definitions &Translations Freebase(0.00 / 0 votes)Rate this definition: Standard deduction. The standard deduction, as defined under United States tax law, is a dollar amount that non-itemizers may subtract from their income and is based upon filing status. It is available to US citizens and resident aliens who are individuals, married persons, and heads of household and increases every year.
672148e4ec726eac7f8bb5a03c5c136c
- Definitions for common health insurance terms. DEFINITION: The deductible is the amount an individual must pay for health care expenses before insurance (or a self-insured company) covers the costs. Often, insurance plans are based on yearly deductible amounts. Related terms: coinsurance, copayment. group health insurance (1)
7ff2c8a7abaf1adc6a4d7d5873148052
deductionnoun deduction noun (THINKING) C2 [ C or U ] the process of reaching a decision or answer by thinking about the known facts, or the decision that is reached: Through a process of deduction, the detectives discovered the identity of the killer. All we can do is make deductions from the available facts.
3ac4c41632b0cda79c35ebee7fe7dd69
tax-deductible Save to Favorites. An item or expense subtracted from adjusted gross income to reduce the amount of income subject to tax. Tax authorities specify the items that can be deducted from gross income for the purpose of reducing taxable income, and the specific rules governing the deductibility of each of these items.
fdbcd9bc8fb7d7ad3eb41a5aaf6b9c56
- The dentist applies the same teeth gel used in our teeth kits. Our home tooth kit offers gentle teeth whitening but a dentist has to use a teeth laser to speed up the process a little. Time in his chair under an imposing ‘teeth laser’ is a good excuse to charge more money.
7f97ca7c3c8a180d946032b4f3580020
Deductible contribution Deductible Contribution. A contribution that one may place into an IRA, 401(k), or other retirement plan each year that can reduce one's taxable income by the same amount. That is, the deductible contribution is the portion of one's retirement contribution that is tax deductible. The IRS generally sets the limits on deductible contributions.
6d02ad5bf59e268b532c9c92e62ab46f
What is a 'Tax Deduction' What is a 'Tax Deduction'. A tax deduction is a reduction in tax obligation from a taxpayer's gross income. Tax deductions can be the result of a variety of events that the taxpayer experiences over the course of the year.
efc5cd1a95cbc2d0b3f2c67a625f2f13
- For tax deductible, see tax deduction. In an insurance policy, the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses. In general usage, the term deductible may be used to describe one of several types of clauses that are used by insurance companies as a threshold for policy payments. Deductibles are typically used to deter the large number of claims that a consumer can be reasonably expected to bear the cost of.
f42286c9aee4d0ce2464484ca372e095
Demand for money A typical money-demand function may be written as. where is the nominal amount of money demanded, P is the price level, R is the nominal interest rate, Y is real output, and L (.) is real money demand. An alternate name for is the liquidity preference function.
3c030ec36d1780a90a243ec4065ccebc
Health Insurance Deductible: What It Is and How It Works Your deductible is a fixed amount you have to pay each year toward the cost of your health care bills before your health insurance coverage kicks in fully and begins to pay (if you're enrolled in Medicare, the Part A deductible is based on benefit periods rather than the calendar year).
cc6da4e02217f1490c4c815ba4d172c3
depreciation Depreciation is the deduction for the reasonable allowance for the wear and tear of assets with a life of more than one year, including real estate but not inventory, used in a trade or business or held for the production of income.
93125d15de7aebe8023adfb7af86e612
- What is a 'Deductible'. A deductible is the amount of money an individual pays for expenses before his insurance plan starts to pay. The word deductible can also work as an adjective to describe the tax-deductible expenses that can deducted from someone's adjusted gross income to reduce his taxable income and his tax liability. Next Up.
c74d3e5606a146eb18b5830c1794d231
What Is the Difference Between Deductible and Non-Deductible For the IRS? A deductible expense is one you can subtract from your taxable gross income. Deductible expenses reduce your tax liability. A non-deductible expense, on the other hand, does not impact your tax bill. Certain expenses are always deductible, while others can never be deducted.
88aa58f2f086de2e1feaefdb7b7601fe
What does a deductible mean? A deductible is the amount you have to pay out-of-pocket before the insurance company starts paying your covered health care expenses. For example, if your deductible is $250, you have to spend $250 for doctors' visits or for prescription medications before your health insurance company will start to pay.
4c8a53af823f1e084309e9882a835155
- noun. 1  The definition of a deduction is the act of understanding something based on evidence. An example of a deduction is what a detective makes after he compares and interprets the details of an investigation. 2  A deduction is defined as when something, especially money, is taken away.
b2df114026de6b727cd9451adbaff237
- DEFINITION of 'Dividends Received Deduction-DRD'. A tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake.The purpose of this deduction is to soften the consequences of triple taxation. tax deduction received by a corporation on the dividends paid to it by companies in which it has an ownership stake.
5f2782d49aafd6aacbd5292e8b971510
Income Tax Act ( R.S.C., 1985, c. 1 (5th Supp.)) (ii) the total of all amounts deductible by the person (otherwise than by virtue of section 111) from the person’s income for the purpose of computing the person’s taxable income for the year in accordance with the provisions of this Act.
d4e3c8049e6502c8b6e2d6ea3f294a20
- What is ALLOWANCE? A deduction, an average payment, a portion assigned or allowed: the act of allowing.
e1c95924f494588579ee15e5b1f676e7
Itemized Deductions Itemized Deduction. A deduction from one's taxable income as the result of a specific expense the taxpayer has had over the course of the tax year. Most medical expenses, for example, may be deducted from one's taxable income. The same is the case for interest on mortgages and business expenses.
b478eee3d9c5af8e66852710a70659d7
Standard deduction Under United States tax law, the standard deduction is a dollar amount that non-itemizers may subtract from their income before income tax is applied. Taxpayers may choose either itemized deductions or the standard deduction, but usually choose whichever results in the lesser amount of tax payable.
9aa6cb922dd6616c416e3598a55b7ad9
Your Health Care Coverage 1. The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs. 2. An amount subtracted from an individual's adjusted gross income to reduce the amount of taxable income. Also known as tax deductible.
ea23f780d78a1aa5f11204b7ccfaa124
What Is the Meaning of Statutory Deductions? Employers make deductions from employees' wages either on a statutory or voluntary basis. A voluntary deduction is one that the employer offers and the employee accepts. A statutory deduction is one that federal or state law requires. Statutory deductions take various forms. The calculation varies by deduction type.