I

104TH CONGRESS

1ST SESSION H. R. 1272

To amend the Internal Revenue Code of 1986 to allow a deduction for

the payment of postsecondary education expenses.

IN THE HOUSE OF REPRESENTATIVES

MARCH 21, 1995

Mr. ACKERMAN introduced the following bill; which was referred to the

Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a

deduction for the payment of postsecondary education

expenses.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. DEDUCTION FOR POSTSECONDARY EDUCATION

4 EXPENSES.

5 (a) DEDUCTION ALLOWED.—Part VII of subchapter

6 B of chapter 1 of the Internal Revenue Code of 1986 (re7 lating to additional itemized deductions for individuals) is

8 amended by redesignating section 220 as section 221 and

9 by inserting after section 219 the following new section:
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1 ‘‘SEC. 220. POSTSECONDARY EDUCATION EXPENSES.

2 ‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an

3 individual, there shall be allowed as a deduction an

4 amount equal to the qualified postsecondary education ex5 penses paid by the taxpayer during the taxable year.

6 ‘‘(b) DOLLAR LIMITATIONS.—

7 ‘‘(1) PER STUDENT.—The aggregate payments

8 during the taxable year for the qualified postsecond9 ary education expenses of each individual which may

10 be taken into account under subsection (a) shall not

11 exceed $10,000.

12 ‘‘(2) PER TAXPAYER.—The amount allowed as

13 a deduction under subsection (a) for the taxable year

14 shall not exceed $20,000.

15 ‘‘(c) DEFINITIONS.—For purposes of this section—

16 ‘‘(1) QUALIFIED POSTSECONDARY EDUCATION

17 EXPENSES.—The term ‘qualified postsecondary edu18 cation expenses’ means qualified tuition and related

19 expenses of—

20 ‘‘(A) the taxpayer, or

21 ‘‘(B) an individual who is the spouse, or a

22 dependent, of the taxpayer for the taxable year

23 in which such expenses are incurred,

24 for attendance at an eligible educational institution.
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1 ‘‘(2) QUALIFIED TUITION AND RELATED EX2 PENSES.—The term ‘qualified tuition and related ex3 penses’ means—

4 ‘‘(A) tuition and fees required for enroll5 ment or attendance at an eligible educational

6 institution,

7 ‘‘(B) fees, books, supplies, and equipment

8 required for courses of instruction at such an

9 institution, and

10 ‘‘(C) reasonable living expenses while away

11 from home.

12 Such term shall not include expenses which are

13 treated as not described in section 135(c)(2)(A) by

14 reason of section 135(c)(2)(B).

15 ‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.—

16 The term ‘eligible educational institution’ has the

17 meaning given to such term by section 135(c)(3).

18 ‘‘(d) COORDINATION WITH OTHER PROVISIONS.—

19 ‘‘(1) NO DOUBLE BENEFIT.—

20 ‘‘(A) IN GENERAL.—No deduction shall be

21 allowed under subsection (a) for qualified post22 secondary education expenses with respect to

23 which a deduction is allowed under any other

24 provision of this chapter.
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1 ‘‘(B) SAVINGS BOND EXCLUSION.—A de2 duction shall be allowed under subsection (a)

3 for qualified postsecondary education expenses

4 only to the extent the amount of such expenses

5 exceeds the amount excludable under section

6 135 for the taxable year.

7 ‘‘(e) SPECIAL RULES.—

8 ‘‘(1) ADJUSTMENT FOR CERTAIN SCHOLAR9 SHIPS AND VETERANS BENEFITS.—The amounts

10 otherwise taken into account under subsection (a) as

11 qualified postsecondary education expenses of any

12 individual during any period shall be reduced (before

13 the application of subsection (b)) by any amounts

14 received by such individual during such period as—

15 ‘‘(A) a qualified scholarship (within the

16 meaning of section 117(b)) which under section

17 117 is not includible in gross income, or

18 ‘‘(B) an educational assistance allowance

19 under chapters 30, 31, 32, 34, or 35 of title 38

20 of the United States Code.

21 ‘‘(2) ELIGIBLE COURSES.—Amounts paid for

22 qualified postsecondary education expenses of any

23 individual shall be taken into account under sub24 section (a) only to the extent such expenses are at25 tributable to courses of instruction for which credit
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1 is allowed toward a degree by an institution of high2 er education or toward a certificate of required

3 course work at a vocational school.

4 ‘‘(3) INDIVIDUAL MUST BE AT LEAST A HALF5 TIME STUDENT.—No deduction shall be allowed

6 under subsection (a) for amounts paid during the

7 taxable year for qualified postsecondary education

8 expenses with respect to any individual unless that

9 individual, during any 4 calendar months during the

10 calendar year in which the taxable year of the tax11 payer begins, is at least a half-time student at an el12 igible education institution.

13 ‘‘(4) TAXPAYER WHO IS DEPENDENT OF AN14 OTHER TAXPAYER.—No deduction shall be allowed

15 to a taxpayer under subsection (a) for amount paid

16 for the education of such taxpayer if such taxpayer

17 is a dependent of another person for a taxable year

18 beginning in the calendar year in which the taxable

19 year of the taxpayer begins.

20 ‘‘(5) SPOUSE.—No deduction shall be allowed

21 under subsection (a) for amounts paid during the

22 taxable year for qualified postsecondary education

23 expenses for the spouse of the taxpayer unless—
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1 ‘‘(A) the taxpayer is entitled to an exemp2 tion for his spouse under section 151(b) for the

3 taxable year, or

4 ‘‘(B) the taxpayer files a joint return with

5 his spouse for the taxable year.’’

6 (b) DEDUCTION ALLOWED IN COMPUTING AD7 JUSTED GROSS INCOME.—Section 62(a) of such Code is

8 amended by inserting after paragraph (15) the following

9 new paragraph:

10 ‘‘(16) POSTSECONDARY EDUCATION EX11 PENSES.—The deduction allowed by section 220.’’

12 (c) CONFORMING AMENDMENT.—The table of sec13 tions for part VII of subchapter B of chapter 1 of such

14 Code is amended by striking the item relating to section

15 220 and inserting:

‘‘Sec. 220. Postsecondary education expenses.

‘‘Sec. 221. Cross reference.’’

16 (d) EFFECTIVE DATES.—The amendments made by

17 this section shall apply to taxable years beginning after

18 December 31, 1994.

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