human
Can you explain how the mortgage interest tax deduction works?
assistant
Mortgage interest tax deduction is a tax benefit offered on mortgages taken out to purchase a primary residence or a second home. It allows homeowners to deduct the interest paid on their mortgage from their taxable income. Homeowners can use this deduction to reduce their tax burden, allowing them to keep more of their income. To be eligible for the deduction, the mortgage must be secured by the home and the homeowner must be responsible for making the payments. The amount that you can deduct is the lesser of the amount paid or satisfied during the year or the amount of mortgage interest reported by the lender.