Deduct Meaning and Definition

Pronunciation

/ˈdɛdkɪt/ 🔊

Part of Speech

Noun

Definition

A reduction or subtracting of something, such as a charge or debt.

Examples

• The company was able to deduct the cost of training from their taxes.
• The insurance policy allowed deducting medical expenses from the premium.

Synonyms

• Subtract
• Reduce

Antonyms

• Adding
• Increasing

Additional Information

In accounting, deduction refers to the process of reducing an amount or value from a larger sum, such as taxes or expenses. This can be done to minimize the financial impact or to meet certain financial goals. In everyday language, deduction can refer to the act of taking away or subtracting something, such as deducting a payment from an invoice.

Deductions can be used strategically in finance to optimize one’s financial situation. For instance, employees may use tax deductions to reduce their taxable income, while businesses may deduct business expenses to reduce their taxable profits.

Etymology

The word “deduct” comes from the Latin “deducere,” meaning “to lead away” or “to take away.”

Usage Notes

When using the word “deduct,” it’s essential to be specific about what is being deducted and from what. For instance, “I will deduct the cost of the book from my refund” is a clear and precise statement, whereas “I will deduct something” is ambiguous and unclear.

Cultural References

The concept of deduction is prevalent in popular culture, particularly in finance and accounting. Movies like “The Accountant” (2016) and “The Big Short” (2015) feature characters who use deduction to manipulate financial systems and make profit.

Idiomatic Expressions or Phrases

Common idioms or phrases that include the word “deduct” are:

• “Deducted from the cost”
• “Deductible expenses”
• “Deducting from the profit”

Related Words or Phrases

Words or phrases closely related in meaning or usage to “deduct” are:

• Subtract
• Reduce
• Take away
• Add up

Collocations

Common word combinations with the term “deduct” are:

• “Deduct from the cost”
• “Deductible expenses”
• “Deducting from the profit”
• “Deductible taxes”

Frequency of Use

According to the Corpus of Contemporary American English (COCA), the word “deduct” appears approximately 3,500 times per million words in modern English language.

Common Misspellings

Common misspellings and variations of the word “deduct” are:

• Dedict
• Deductible
• Devect