I

106TH CONGRESS

1ST SESSION H. R. 1188

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

the payment of tuition and related expenses for postsecondary education.

IN THE HOUSE OF REPRESENTATIVES

MARCH 18, 1999

Mr. ACKERMAN (for himself, Ms. BROWN of Florida, Mrs. CLAYTON, Mr.

COSTELLO, Mr. CROWLEY, Mr. GREEN of Texas, Mr. HINCHEY, Ms.

JACKSON-LEE of Texas, Mr. LANTOS, Ms. NORTON, Mr. PAUL, Ms. ROSLEHTINEN, Mr. SANDLIN, Mr. TOWNS, Mr. TRAFICANT, and Mr.

WEINER) 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 tuition and related expenses

for postsecondary education.

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 TUITION AND RELATED EX4 PENSES FOR POSTSECONDARY EDUCATION.

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
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1 amended by redesignating section 222 as section 223 and

2 by inserting after section 221 the following new section:

3 ‘‘SEC. 222. TUITION AND RELATED EXPENSES FOR POST4 SECONDARY EDUCATION.

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

6 individual, there shall be allowed as a deduction an

7 amount equal to the qualified tuition and related expenses

8 of an eligible student paid by the taxpayer during the tax9 able year.

10 ‘‘(b) DOLLAR LIMITATIONS.—

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

12 during the taxable year for the qualified tuition and

13 related expenses of each individual which may be

14 taken into account under subsection (a) shall not ex15 ceed $10,000.

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

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

18 shall not exceed $20,000.

19 ‘‘(3) PHASEOUT OF DEDUCTION.—

20 ‘‘(A) IN GENERAL.—The amount which

21 would (but for this subsection) be taken into ac22 count under subsection (a) shall be reduced

23 (but not below zero) by the amount determined

24 under subparagraph (B).
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1 ‘‘(B) AMOUNT OF REDUCTION.—The

2 amount determined under this subparagraph is

3 the amount which bears the same ratio to the

4 amount which would be so taken into account

5 as—

6 ‘‘(i) the excess of—

7 ‘‘(I) the taxpayer’s modified ad8 justed gross income for such taxable

9 year, over

10 ‘‘(II) $125,000 ($175,000 in the

11 case of a joint return), bears to

12 ‘‘(ii) $20,000.

13 ‘‘(B) MODIFIED ADJUSTED GROSS IN14 COME.—The term ‘modified adjusted gross in15 come’ means adjusted gross income

16 determined—

17 ‘‘(i) without regard to this section and

18 sections 911, 931, and 933, and

19 ‘‘(ii) after application of sections 86,

20 135, 137, 219, 221, and 469.

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

22 ‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible

23 student’ has the meaning given to such term by sec24 tion 25A(b)(3).
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1 ‘‘(2) QUALIFIED TUITION AND RELATED EX2 PENSES.—The term ‘qualified tuition and related ex3 penses’ has the meaning given to such term by sec4 tion 25A(f)(1), reduced by the sum of—

5 ‘‘(A) the amount excluded from gross in6 come under section 127, 135, or 530 by reason

7 of such expenses, and

8 ‘‘(B) the amount of any scholarship, allow9 ance, or payment described in section

10 25A(g)(2).

11 ‘‘(d) SPECIAL RULES.—

12 ‘‘(1) ELIGIBLE COURSES.—Amounts paid for

13 qualified tuition and related expenses of any indi14 vidual shall be taken into account under subsection

15 (a) only to the extent such expenses are attributable

16 to courses of instruction for which credit is allowed

17 toward a degree by an institution of higher edu18 cation or toward a certificate of required course

19 work at a vocational school.

20 ‘‘(2) TAXPAYER WHO IS DEPENDENT OF AN21 OTHER TAXPAYER.—No deduction shall be allowed

22 to a taxpayer under subsection (a) for an amount

23 paid for the education of such taxpayer if such tax24 payer is a dependent of another person for a taxable
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1 year beginning in the calendar year in which the tax2 able year of the taxpayer begins.

3 ‘‘(3) SPOUSE.—No deduction shall be allowed

4 under subsection (a) for amounts paid during the

5 taxable year for qualified tuition and related ex6 penses of the spouse of the taxpayer unless—

7 ‘‘(A) the taxpayer is entitled to an exemp8 tion for his spouse under section 151(b) for the

9 taxable year, or

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

11 his spouse for the taxable year.’’.

12 (b) DEDUCTION ALLOWED IN COMPUTING AD13 JUSTED GROSS INCOME.—Section 62(a) of such Code is

14 amended by inserting after paragraph (17) the following

15 new paragraph:

16 ‘‘(18) TUITION AND RELATED EXPENSES FOR

17 POSTSECONDARY EDUCATION.—The deduction al18 lowed by section 222.’’.

19 (c) CONFORMING AND CLERICAL AMENDMENTS.—

20 (1) Subparagraph (A) of section 86(b)(2) of

21 such Code is amended by inserting ‘‘222,’’ after

22 ‘‘221,’’.

23 (2) Subparagraph (A) of section 135(c)(4) of

24 such Code is amended by inserting ‘‘222,’’ after

25 ‘‘221,’’.
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1 (3) Subparagraph (A) of section 137(b)(3) of

2 such Code is amended by inserting ‘‘222,’’ after

3 ‘‘221,’’.

4 (4) Clause (ii) of section 219(g)(3)(A) of such

5 Code is amended by inserting ‘‘222,’’ after ‘‘221,’’.

6 (5) Clause (i) of section 221(b)(2)(C) of such

7 Code is amended by inserting ‘‘222,’’ before ‘‘911,’’.

8 (6) The table of sections for part VII of sub9 chapter B of chapter 1 of such Code is amended by

10 striking the item relating to section 221 and insert11 ing:

‘‘Sec. 222. Tuition and related expenses for postsecondary education.

‘‘Sec. 223. Cross reference.’’.

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

13 this section shall apply to taxable years beginning after

14 December 31, 1998.

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