deductible
Adjective:
- Capable of being subtracted or taken away: Describes something, especially an expense or cost, that can be legally subtracted from a total amount, such as taxable income or a claim amount.
Noun:
- Insurance Clause: A specific clause in an insurance policy stating the amount of money the policyholder must pay out-of-pocket before the insurance company's coverage begins for a claim.
- Tax Amount: An amount, especially an expense, that can be subtracted from gross income when calculating taxable income for tax purposes.
Adjective:
- Business travel expenses are often deductible.
- Charitable donations are deductible from your taxable income.
Noun (Insurance):
- My health insurance has a $500 deductible per year.
- After paying the deductible, the insurance covered the rest of the repair costs.
Noun (Tax):
- Mortgage interest is a common tax deductible.
- You should keep receipts for all potential deductibles.
"Meet your deductible": To pay enough in covered expenses to reach the amount specified in your insurance policy's deductible clause, after which the insurer pays a larger share.
- Once you meet your deductible, the insurance will cover 80% of further costs.
"Above-the-line deductible": A tax deduction available even to taxpayers who do not itemize their deductions.
- Contributions to a traditional IRA are an above-the-line deductible.
Deduct (verb): To subtract or take away an amount from a total.
- The bank will deduct the fee from your account.
Deduction (noun): The act of deducting; an amount that is or may be deducted.
- The deduction for dependents reduces your tax bill.
- Subtractable (adj.): Capable of being taken away.
- Out-of-pocket cost (n., insurance context): The initial amount paid by the insured.
- Exemption / Allowance (n., tax context): An amount that may be excluded or deducted.
High-deductible health plan (HDHP): A type of health insurance plan with lower premiums and a higher deductible than traditional plans.
- He chose an HDHP and pairs it with a health savings account.
Itemized deductions: A list of eligible expenses that are individually subtracted from gross income to reduce taxable income, as opposed to taking a standard deduction.
- For the year, her itemized deductions totaled more than the standard deduction.
- "It's all deductible": A colloquial phrase suggesting that a business expense can be written off for tax purposes, often used humorously or to justify a cost.
- Don't worry about the expensive dinner with the client; it's all deductible.
- acceptable as a deduction (especially as a tax deduction)
- a clause in an insurance policy that relieves the insurer of responsibility to pay the initial loss up to a stated amount
- (taxes) an amount that can be deducted (especially for the purposes of calculating income tax)