Definition of "tax deduction" []

• A reduction in the gross amount on which a tax is calculated; reduces taxes by the percentage fixed for the taxpayer's income bracket (noun)

WordNet. Princeton University. 2010.

• "The business-use percentage becomes an immediate tax deduction as an expense or through depreciation."
• "By using this strategy, Bob created a $1,500-per-year tax deduction 50 weeks × $30 per week."
• "You must use the straight-line method, which give you approximately half the tax deduction the first year of the MACRS method."