deductible cost

**deductible cost**

A **deductible cost** refers to an expense that can be subtracted from your total income before calculating taxable income. In the context of taxes, it reduces the amount of income subject to taxation, ultimately lowering your tax liability. Deductible costs often include business expenses, medical expenses, mortgage interest, and certain education costs, among others. Understanding which costs are deductible helps individuals and businesses maximize their tax savings and comply with tax regulations.