Deductible

This term designates possible subtractions from the adjustable gross income. Anything that can be subtracted from the adjustable gross income is no longer subject to taxation. Depending on state regulations these items include mortgage interest, local taxes, unreimbursed business expenses, donations and charitable contributions. In other texts the term is also referred to as tax-deductible. The deductible, in insurance terminology, can also designate the amount that the insured has to pay before reimbursement can commence as the stipulated coinsurance rate dictates.