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Deduction

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Dictionary Says

Definition of 'Deduction'

Any item or expenditure subtracted from gross income to reduce the amount of income subject to tax.

Also referred to as "allowable deduction".
Investopedia Says

Investopedia explains 'Deduction'

For example, if you make $40,000 and you have a deduction for $1,000, then your taxable income is reduced to $39,000.

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