DEDUCTION
deduction,n.1. The act or process of subtracting or taking away. 2.Tax. An amount subtracted
from gross income when calculating adjusted gross income, or from adjusted gross income when
calculating taxable income. — Also termed tax deduction. Cf. EXEMPTION(3); TAX CREDIT.
[Cases: Internal Revenue 3270–3516; Taxation 1031.1–1046. C.J.S. Internal Revenue §§ 33,
55, 58, 63, 140, 146–205, 209–265, 267–268, 270–287, 329–330, 335, 409, 489, 671, 673,
799–800; Taxation §§ 1738–1755.]
additional standard deduction.The sum of the additional amounts that a taxpayer who turns
65 or becomes blind before the close of the taxable year is entitled to deduct. [Cases: Internal
Revenue 3295; Taxation 1031.1. C.J.S. Taxation §§ 1738–1739.]
charitable deduction.A deduction for a contribution to a charitable enterprise that has
qualified for tax-exempt status in accordance with IRC (26 USCA) § 501(c)(3) and is entitled to
be deducted in full by the donor from the taxable estate or from gross income. See CHARITABLE
CONTRIBUTION(2); CHARITABLE ORGANIZATION. [Cases: Internal Revenue 3337;
Taxation 1031.1. C.J.S. Internal Revenue §§ 186, 212, 215–222, 276; Taxation §§ 1738–1739.]
deduction in respect of a decedent.A deduction that accrues to the point of death but is not
recognizable on the decedent’s final income-tax return because of the accounting method used,
such as an accrued-interest expense of a cash-basis debtor.
itemized deduction.An expense (such as a medical expense, home-mortgage interest, or a
charitable contribution) that can be subtracted from adjusted gross income to determine taxable
marital deduction.A federal tax deduction allowed for lifetime and testamentary transfers
from one spouse to another. IRC (26 USCA) §§ 2056, 2523. [Cases: Internal Revenue 4169.
C.J.S. Internal Revenue § 535.]
miscellaneous itemized deduction.Generally, an itemized deduction of job or investment
expenses; a deduction other than those allowable in computing adjusted gross income, those
enumerated in IRC (26 USCA) § 67(b), and personal exemptions. • This type of deduction is
allowed only to an itemizing taxpayer whose total miscellaneous itemized deductions exceed a statutory percentage of adjusted gross income.
standard deduction.A specified dollar amount that a taxpayer can deduct from adjusted gross
income, instead of itemizing deductions, to determine taxable income. [Cases: Internal Revenue
3295; Taxation 1031.1. C.J.S. Taxation §§ 1738–1739.]
3. The portion of a succession to which an heir is entitled before a partition. 4. The act or
process of reasoning from general propositions to a specific application or conclusion. Cf.
INDUCTION(2). — deduct (for senses 1–3), vb. — deduce (for sense 4), vb. [Blacks Law 8th]