deductible
adjective
, dē-\
Definition of deductible
(Entry 1 of 2)
deductible
nounDefinition of deductible (Entry 2 of 2)
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Other Words from deductible
Adjective
, dē- ;\
noun
Examples of deductible in a Sentence
Adjective
The trip was deductible as a business expense.Noun
I have an insurance policy with a $1,000 deductible.Recent Examples on the Web: Adjective
Investors will receive 5% returns annually and full repayment after five years or can choose to forgive the loan as a tax-deductible donation. — Los Angeles Times, "To house almost 600 homeless people, a Venice couple are working outside the system," 2 Aug. 2019 That raises potential tax questions, since donations to the charity are tax-deductible, while those to the N.R.A. itself are not. — Danny Hakim, New York Times, "Beyond the Grave, the N.R.A.’s $56 Million Donor Lives On," 16 July 2019 The Husky Ticket Project is now incorporated as a non-profit, and is hoping to hear soon from the IRS with approval to become a 501(c)(3), allowing donations to be tax-deductible and eligible for matching from companies. — Dom Amore, courant.com, "UConn grads help fill empty seats at Huskies athletic events with youth groups through nonprofit," 14 June 2019 Both Loveland Legacy Foundation and Ramsey-Paxton Cemetery Associations are 501-3C organizations so your contributions may be tax-deductible to the extent allowable by law. — Rob Geiger/share, Cincinnati.com, "Loveland Legacy Foundation partners with Ramsey-Paxton Cemetery to get last of funding," 4 June 2019 In 2017, the interest on up to $100,000 of such debt was deductible, but for 2018 the write-off is greatly restricted. — Laura Saunders, WSJ, "What You Need to Know About the New Tax Law (Now That You’re Doing Your Taxes)," 15 Feb. 2019 That’s especially problematic for people with high-deductible health insurance plans, defined by the IRS as those with deductibles over $1,350 for an individual and over $2,700 for a family. — Wendi C. Thomas, ProPublica, "The Nonprofit Hospital That Makes Millions, Owns a Collection Agency and Relentlessly Sues the Poor," 27 June 2019 The Hoffmans' out-of-pocket expenses have varied according to their health insurance coverage, but in recent years their own costs have risen significantly due to higher deductible and higher co-pay insurance plans, Julie Hoffman said. — Stephanie Innes, azcentral, "Cheaper insulin 'nowhere to be found' in Arizona, pharmacies and advocates say," 24 June 2019 But a utility found to have acted irresponsibly would be required to pay a deductible in order to tap it and could not raise customer rates as a result. — Katherine Blunt, WSJ, "Gavin Newsom Proposes Wildfire Fund to Bolster PG&E, Other California Utilities," 21 June 2019Recent Examples on the Web: Noun
One barrier is cost: Some patients lack insurance, and others may face high deductibles and copayments. — Richard Gunderman, The Conversation, "The test that could save the life of a long-time smoker you know," 2 Sep. 2019 The other $3,020 consisted of deductibles, co-payments and coinsurance. — Megan Cerullo, CBS News, "Here's how much a family with good health insurance spent last year," 21 Aug. 2019 Many of them had insurance but still owed their co-pay or deductibles, which have tripled on average in the past decade across the United States. — Eli Saslow, Washington Post, "The ‘follow-up appointment’," 17 Aug. 2019 In defending his plan, Mr. Sanders repeatedly pointed out how many Americans are uninsured or underinsured, unable to pay high deductibles and other out-of-pocket costs and thus unable to seek care. — Abby Goodnough, New York Times, "Democratic Debate Turns Ferocious Over Health Care," 31 July 2019 Patients are facing high deductibles and being provided with little information on the out of pocket cost of their medical care. — Erik J. Blutinger, Philly.com, "An E.R. doctor on 'surprise billing' for emergency care," 5 June 2018 In other instances, contractors may use an advertising agreement to trade for the deductible. — Leah Napoliello, Houston Chronicle, "BBB on Homes: Beware of those offers of free deductibles," 11 Aug. 2019 The average deductible has more than tripled, to $1,350. — oregonlive.com, "High deductibles add to squeeze on middle class America," 4 Aug. 2019 The Syracuse school district said on Friday that its insurance policy would cover the cost of regaining access to its computer systems, subject to a $50,000 deductible that the district expects to pay, according to The Post-Standard newspaper. — New York Times, "Hackers’ Latest Target: School Districts," 28 July 2019These example sentences are selected automatically from various online news sources to reflect current usage of the word 'deductible.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for deductible
deductible
adjectiveFinancial Definition of deductible
What It Is
In the finance world, deductible is usually short for tax-deductible, which refers to an expense that reduces the amount of income that is subject to tax.
In the insurance world, a deductible is a required payment from the insured to the insurer in order to trigger coverage.
How It Works
For example, let's assume John Doe pays $10,000 for mortgage interest last year. He and his wife earned $150,000 from their jobs last year. Based on their circumstances, they can get a deduction for the mortgage interest (meaning they can deduct it from their taxable income). As a result, they must pay federal income tax on $150,000 - $10,000 = $140,000.
Anything that is deductible has a special financial value. In our example, if that mortgage interest hadn't been deductible, John Doe would have paid income tax on that $10,000 of income. If he's in the 28% tax bracket, that could amount to $2,800. Thus, the fact that mortgage interest is deductible saves him $2,800 in taxes.
Why It Matters
When things are deductible, they lower a person's tax bill, which is why taxpayers invest time in seeking out deductions and structuring transactions to maximize those deductions. There are hundreds of different types of tax deductions, though some deductions are available only to people in certain income ranges (typically under $100,000 to $150,000) and most are available only to people in certain circumstances or companies in certain industries.
Source: Investing Answers
deductible
adjective
English Language Learners Definition of deductible
(Entry 1 of 2)
deductible
nounEnglish Language Learners Definition of deductible (Entry 2 of 2)
See the full definition for deductible in the English Language Learners Dictionary
deductible
adjective
\
Legal Definition of deductible
(Entry 1 of 2)
Other Words from deductible
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noun
deductible
noun