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.
The standard deduction is a fixed amount that you can deduct without reporting any specific expenses; it is different for each of the filing statuses. For example, if you use the head of household status on your 2011 tax return, you can claim a deduction of $8,500. Therefore, when evaluating whether to itemize and claim a uniform deduction, you need to calculate your total itemized deductions and compare that amount to the standard deduction.