deducted

Deducted is the past tense and past participle of the verb deduct. Deduct means to subtract an amount from a total or to withhold a portion in financial calculations. The form deducted describes a completed action, as in “Taxes were deducted from his paycheck” or “The invoice had a deduction for a service charge.” The term is common in finance, accounting, payroll, taxation, and contract management.

In finance and accounting, deductions reduce gross amounts to produce net figures. Common examples include salary withholdings for income tax, social security, retirement contributions, and health insurance; discounts or refunds applied to invoices; and allowable business expenses deducted to compute taxable income. Deductions may be mandated by law or permitted by contract, and they are typically supported by records.

In taxation, deductions lower the amount of income subject to tax and can be claimed by individuals or businesses under specific rules. Some deductions are taken automatically at source by a payer, while others require a claim on a tax return. Clear documentation is usually required to substantiate deductible amounts.

In contracts and procurement, deductions may be used to adjust payments for late delivery, quality shortfalls, or non-compliance, in accordance with contract terms and applicable law. The precise treatment of deductions depends on governing agreements and statutory regulations.

Etymology and usage notes: Deduct derives from Latin deducere, meaning to lead down or derive. The related noun deduction covers subtraction, as well as logical inference, but the past participle form deducted is generally used for completed subtractions or withholdings; for reasoning processes, the related form deduced is typical.