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what is deduction? Related: Tax Deductions - Computation of Total Inc...
A deduction is any item or expenditure subtracted from gross income to reduce the amount of income subject to income tax. It is also referred to as an "allowable deduction." For example, if you earn $40,000 and claim a deduction for $1,000, then your taxable income is reduced to $39,000.
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what is deduction? Related: Tax Deductions - Computation of Total Income, Income Tax Laws
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