tax-deductible

adjective

Meaning

Describing an expense or donation that can be subtracted from one's taxable income, thereby reducing the amount of tax owed.

Examples

  • Many business expenses are tax-deductible if they are ordinary and necessary for operating the business.
  • Contributions to a traditional IRA are tax-deductible for most people.

Synonyms: allowable, exempt, non-taxable, tax-exempt