# Tax Deduction

**IRI:** https://folio.openlegalstandard.org/RBe3wpR5ZicE4QYklVEqSMR

## Labels

**Preferred Label:** Income Reduction Allowance

**Alternative Labels:**

- Allowable Expense
- Tax Write-Off

## 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

## Sub Class Of

- https://folio.openlegalstandard.org/RJ7P2VbioQVexfXhjLwsBI

**Deprecated:** False