For tax purposes, a deductible is an expense that an individual taxpayer or a business can subtract from ...LinkedInwithBackgroundYourPrivacyRightsInvestopediaandourthird-partypartnersusecookiesandprocesspersonaldatalikeuniqueidentifiersbasedonyourconsenttostoreand/oraccessinformationonadevice,displaypersonalizedadsandforcontentmeasurement,audienceinsight,andproductdevelopment.TochangeorwithdrawyourconsentchoicesforInvestopedia.com,includingyourrighttoobjectwherelegitimateinterestisused,clickbelow.Atanytime,youcanupdateyoursettingsthroughthe"EUPrivacy"linkatthebottomofanypage.Thesechoiceswillbesignaledgloballytoourpartnersandwillnotaffectbrowsingdata.ListofPartners(vendors)Weandourpartnersprocessdatato:Activelyscandevicecharacteristicsforidentification.Useprecisegeolocationdata.Storeand/oraccessinformationonadevice.Selectpersonalisedcontent.Createapersonalisedcontentprofile.Measureadperformance.Selectbasicads.Createapersonalisedadsprofile.Selectpersonalisedads.Applymarketresearchtogenerateaudienceinsights.Measurecontentperformance.Developandimproveproducts.ListofPartners(vendors)IAcceptShowPurposesTaxDeductions/CreditsTaxDeductionsandCreditsGuideTaxesTaxDeductions/CreditsWhatIsaDeductible?Fortaxpurposes,adeductibleisanexpensethatanindividualtaxpayerorabusinesscansubtractfrom adjustedgrossincomewhilecompletingataxform.Thedeductibleexpensereducesreportedincomeandthereforetheamountofincometaxesowed.U.S.individualtaxpayersmayeitherusethestandarddeductionorfilloutalistofalloftheirdeductibleexpenses,dependingonwhichresultsinasmallertaxableincome.KeyTakeawaysMostwage-earnersusethestandarddeduction.However,thosewithveryhighdeductibleexpensescanchooseto"itemize"ifthatresultsinasmallertaxbill.Thelistofdeductibleexpensesforindividualsshranksignificantlywithtaxreformin2018.Atthesametime,thestandarddeductionnearlydoubled.Businessesmustitemizealloftheiroperatingexpensesinordertoarriveatthecorrecttaxableincomefigure.1:38DeductibleUnderstandingDeductiblesForindividualwage-earners,t