The examples and perspective in this article may not represent a worldwide view of the subject. (October 2015) |
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Taxation |
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An aspect of fiscal policy |
A tax deduction or benefit is an amount deducted from taxable income, usually based on expenses such as those incurred to produce additional income. Tax deductions are a form of tax incentives, along with exemptions and tax credits. The difference between deductions, exemptions, and credits is that deductions and exemptions both reduce taxable income, while credits reduce tax.[1]