What is Legal Terms - Tax Deduction?

Legal Terms - Tax Deduction — Tax Deduction Information: A tax deduction is any allowable expense that may be subtracted from the taxpayer's adjusted gross income to calculate the amount of actual taxable income. Examples of allowable deductions for an individual taxpayer are state and local tax expense, charitable contributions, and home mortgage interest. Finding all the allowable deductions is the job of every tax planner.