Tax Deduction
type: Class
preferred label: Income Reduction Allowance
alternative label: Allowable Expense
alternative label: Tax Write-Off
subclass of: RJ7P2VbioQVexfXhjLwsBI
definition: A Tax Deduction is a reduction of a taxpayer's taxable income, lowering the amount of income subject to taxation. It operates by subtracting specific expenses or allowances from gross income, thereby decreasing the tax base before the tax rate is applied