2. An amount subtracted from an individual's adjusted gross income to reduce the amount of taxable income.
Also known as "tax deductible".
1. For example, if you get into an accident and your medical expenses are $2,000 and your deductible is $300, then you would have to pay the $300 out-of-pocket first before the insurance company paid the remaining $1,700. However, if your accident only resulted in $300 in medical expenses, then you would pay the $300 deductible and the insurance company would pay nothing.
2. There are many types of expenses you can use to reduce the amount of your taxable income such as healthcare expenses, interest expenses (i.e. mortgages, car loans), legal fees and investment-related expenses. However, for those with brokerage accounts, fees such as commissions paid for trades are not deductible.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
deductible — de·duc·ti·ble 1 /di dək tə bəl/ adj: allowable as a deduction de·duc·ti·bil·i·ty / ˌdək tə bi lə tē/ n deductible 2 n: a clause in an insurance policy that relieves the insurer of responsibility for an initial specified loss of the kind insured… … Law dictionary
déductible — [ dedyktibl ] adj. • 1931; du lat. deductum → déduire ♦ Fin. Qu on peut déduire (d un revenu, d un bénéfice). Charges déductibles du revenu. ● déductible adjectif (latin deductum, de deducere, déduire) Qui peut être déduit : Frais professionnels… … Encyclopédie Universelle
Deductible — De*duct i*ble, a. 1. Capable of being deducted, taken away, or withdrawn. [1913 Webster] Not one found honestly deductible From any use that pleased him. Mrs. Browning. [1913 Webster] 2. Deducible; consequential. [1913 Webster] … The Collaborative International Dictionary of English
deductible — deductible. (Del ingl. deductible). adj. deducible … Enciclopedia Universal
deductible — 1610s, that may be deduced, also that may be deducted; from L. deducere (see DEDUCE (Cf. deduce)). As a noun, deductible thing, by 1927 … Etymology dictionary
deductible — (Del ingl. deductible). adj. deducible … Diccionario de la lengua española
deductible — [dē dukt′ə bəl, di dukt′ə bəl] adj. 1. that can be deducted 2. that is allowed as a deduction in computing income tax [deductible expenses] n. 1. a clause in an insurance policy stating that the insurer will pay that portion of a loss, damage,… … English World dictionary
deductible — ► ADJECTIVE ▪ able to be deducted, especially from taxable income. DERIVATIVES deductibility noun … English terms dictionary
Deductible — In an insurance policy, the deductible is the amount of expenses that must be paid out of pocket before an insurer will pay any expenses. It is normally quoted as a fixed quantity and is a part of most policies covering losses to the policy… … Wikipedia
deductible — An amount or period which must be deducted before an insurance payout or settlement is calculated. Bloomberg Financial Dictionary * * * ▪ I. deductible de‧duct‧i‧ble 1 [dɪˈdʌktbl] noun 1. [countable usually plural] ACCOUNTING a payment that is… … Financial and business terms