Deductions

Definition

  • These are expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.

Synonyms
subtractions, deduce, tax write-off

Related Terms and Acronyms

  • Marital Deduction Definition,
    • For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
  • Notice of Assessment (NOA) Acronym, Canada, Important,
    • A form the federal government issues when personal taxes are complete. A notice of assessment shows a breakdown of the given years income along with the balance owing or refund.
    Canada Revenue Agency's T451 tax form.
  • Provision for Credit Losses (PCL) Acronym, Canada,
    • The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.
    • A margin set by companies to compensate for losses due to unpaid credit.
  • Refund Definition,
    • To give back, return, or repay.
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