Eyers! Term of the Day Tax-deductible An item or expense - TopicsExpress

Eyers! Term of the Day Tax-deductible An item or expense subtracted from adjusted gross income to reduce the amount of income subject to tax. Tax authorities specify the items that can be deducted from gross income for the purpose of reducing taxable income, and the specific rules governing the deductibility of each of these items. Some examples of tax-deductible items include mortgage interest, state and local taxes, unreimbursed business expenses, and charitable contributions. Usage Example Many charitable contributions such as gifts of money, donated clothing or volunteer work that incurs expenses are considered tax-deductible because the amount of tax you have to pay is reduced due to these contributions. Source: Investor Words

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