What Is a Deductible?
For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from adjusted gross income while completing a tax form. The deductible expense reduces taxable income and, therefore, the amount of income taxes owed.
U.S. individual taxpayers may either use the standard deduction or fill out a list of all of their deductible expenses, depending on which results in a smaller taxable income.
