dependency deduction

Definition of "dependency deduction"
  1. A reduction in taxable income available for each person who is identified as a legitimate dependent according to the guidelines in sections 151 and 152 of the Internal Revenue Code
How to use "dependency deduction" in a sentence
  1. The family was able to lower their tax bill by claiming a dependency deduction for their two children.
  2. The tax preparer confirmed that a dependency deduction could be claimed for the elderly parent living with the taxpayer.
  3. As a single mother with three children, she was eligible for a significant dependency deduction on her income tax.

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