Deducts

Deducts is the third-person singular present tense of the verb deduct, describing the act of subtracting an amount from a total or of deriving a conclusion from data. The form is used when a subject performs the action, for example: “The employer deducts taxes from wages” or “The algorithm deducts expenses from the budget.” In logic and reasoning, to deduct a conclusion from premises is a formal usage; more common today is deduces, but deducts appears in older, legal, or technical writing to indicate subtraction or derivation.

In finance and accounting, deductions reduce gross income or receipts to arrive at taxable income or net amounts. Payroll deductions withhold taxes and contributions; business deductions subtract allowable expenses. Tax systems often specify deductible amounts and documentation requirements. In software and budgeting contexts, a program may automatically apply deductions to a total, such as discounts or fees, before arriving at a final figure.

Etymology: deduct originates from Latin deductus, the past participle of ducere “to lead,” with the prefix de-, implying removal or subtraction. The sense of leading away a portion of a total evolved into the modern meanings of subtracting and inferring.

See also: deduction, deductible, deduction at source, payroll deduction, tax deduction, logical deduction, subtraction.