Deduction Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Deduction, written in plain English, along with examples of how it is used.

What is Deduction?

n. An amount which is subtracted from total income in order to determine taxable income. The expenditure applies to tax payers and is not equivalent to exemptions such as for marital status, age over 65, disability, or number of dependents which reduce the total amount of owed tax.