What is another word for tax deduction?
Pronunciation: [tˈaks dɪdˈʌkʃən] (IPA) 
Tax deduction is an important way to save your hard-earned money. However, not everyone is aware of the different synonyms that can be used in place of this term. Some of the commonly used synonyms for tax deduction include tax write-off, tax relief, tax break, tax exemption, tax credit, and tax incentive. Tax write-off is mainly used for business expenses, while tax relief refers to the reduction of tax liability. Tax break means a decrease in the tax rate, while tax exemption covers a particular category or type of income. Tax credit reduces the tax bill, and tax incentive is given to encourage specific activities or investments. Regardless of the word used, understanding the various tax-related terms is essential for effective tax planning.
