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.
Deductions are subtractions from a taxpayerâs adjusted gross income (AGI) . They reduce the amount of. income that is taxed . Most taxpayers have a choice of taking a standard deduction or itemizing their deduc-. tions . When taxpayers have a choice, they should use the type of deduction that results in the lower tax .