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
tax write-off, deduce, subtractions
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.
