Which of the following is considered a tax deduction?

Mortgage interest is considered a tax deduction because it allows taxpayers to reduce their taxable income by the amount of interest they pay on their mortgage for their primary residence (and in some cases, a second home). The tax code provides this benefit as a way to promote homeownership and encourage investment in real estate. Taxpayers can itemize their deductions on their tax returns, and mortgage interest is one of the most significant deductions available, often leading to substantial tax savings.

In contrast, child care expenses may qualify for a credit rather than a deduction, as they reduce the tax owed rather than the taxable income. Student loan forgiveness, while beneficial for borrowers, does not affect taxable income directly but rather eliminates a debt obligation. Short-term capital gains are taxed as ordinary income and do not qualify as deductions; instead, they add to taxable income. Understanding these distinctions is crucial for effectively navigating tax regulations and maximizing potential benefits.