CrunchBase(0.00 / 0 votes)Rate this definition: Aras. Aras is a suite of open source Product Life Cycle Management (PLM) software solutions that run on a model-based SOA application framework.
What is a 'Tax Deduction'. A tax deduction is a reduction in tax obligation from a taxpayer's gross income. Tax deductions can be the result of a variety of events that the taxpayer experiences over the course of the year. Tax deductions are removed from taxable income, also known as the adjusted gross income, and thus lowers the taxpayer's overall tax liability.
Voluntary deductions are amounts which an employee has elected to have subtracted from gross pay. Examples are group life insurance, healthcare and/or other benefit deductions, Credit Union deductions, etc. Additionally, voluntary deductions can be taken out of an employeeâs gross pay as a pre-tax deduction, a tax deferred deduction, or a post-tax deduction. Pre-tax deductions reduce the federal, state, and FICA taxable gross amounts. Tax deferred deductions reduce the federal and state taxable gross amounts.