Money taken out of a salary for such things as taxes, medical insurance, and retirement funds is called
"deductions".
A deduction is any thing or expenditure subtracted from gross pay to lessen the measure of pay subject to pay charge. It is additionally alluded to as a "passable derivation." For instance, on the off chance that you acquire $50,000 and guarantee a finding for $1,000, your assessable salary is decreased to $49,000.
A deduction ought not be mistaken with a tax credit, which lessens the measure of expense owed as opposed to decreasing your taxable pay.
