I 

108TH CONGRESS 

2D SESSION H. R. 5262 

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

gross income for uncompensated education costs incurred by veterans’ 

survivors and dependents who are in receipt of educational assistance 

under chapter 35 of title 38, United States Code. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 7, 2004 

Mr. FOSSELLA 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 from gross income for uncompensated education costs incurred by veterans’ survivors and dependents who are in receipt of educational assistance under 

chapter 35 of title 38, United States Code. 

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

3 SECTION 1. FINDINGS. 

4 The Congress finds that— 

5 (1) the United States owes a debt to those men 

6 and women who have lost their lives or have become 

7 completely and permanently disabled in the line of 
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1 duty while defending the Nation in the war on ter2 rorism; 

3 (2) the United States owes a debt to the fami4 lies of these fallen heroes for their sacrifices; and 

5 (3) one way to begin repaying this debt would 

6 be to ensure that the children of these fallen heroes 

7 have access to higher education. 

8 SEC. 2. DEDUCTION OF EDUCATION COSTS OF VETERANS’ 

9 SURVIVORS AND DEPENDENTS. 

10 (a) IN GENERAL.—Part VII of subchapter B of chap11 ter 1 of the Internal Revenue Code of 1986 (relating to 

12 additional itemized deductions for individuals) is amended 

13 by redesignating section 224 as section 225 and by insert14 ing after section 223 the following new section: 

15 ‘‘SEC. 224. EDUCATION COSTS OF VETERANS’ SURVIVORS 

16 AND DEPENDENTS. 

17 ‘‘(a) DEDUCTION ALLOWED.—In the case of an indi18 vidual, there shall be allowed as a deduction for the tax19 able year an amount equal to the amount paid by the tax20 payer during the taxable year (for education furnished to 

21 the eligible person during any academic period beginning 

22 in such taxable year) for qualified education expenses. 

23 ‘‘(b) ELIGIBLE PERSON.—For purposes of subsection 

24 (a), the term ‘eligible person’ has the meaning given such 
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1 term by section 3501(a)(1) of title 38, United States 

2 Code. 

3 ‘‘(c) QUALIFIED EDUCATION EXPENSES.—For pur4 poses of subsection (a)— 

5 ‘‘(1) IN GENERAL.—The term ‘qualified edu6 cation expenses’ means expenses for educational as7 sistance to which the eligible person would be enti8 tled for a month under chapter 35 of title 38, 

9 United States Code, but for the maximum amount 

10 of educational assistance allowance payable for such 

11 month under section 3532 of such chapter. 

12 ‘‘(2) COORDINATION WITH OTHER EDUCATION13 RELATED BENEFITS.—The amount of qualified edu14 cation expenses for any taxable year shall be reduced 

15 by the sum of— 

16 ‘‘(A) the amount excluded from gross in17 come under section 127, 135, 529, or 530 by 

18 reason of such expenses, and 

19 ‘‘(B) the amount of any scholarship, allow20 ance, or payment described in section 

21 25A(g)(2).’’. 

22 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI23 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

24 of section 62 of such Code is amended by inserting after 

25 paragraph (19) the following new paragraph: 
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1 ‘‘(20) EDUCATION COSTS OF VETERANS’ SUR2 VIVORS AND DEPENDENTS.—The deduction allowed 

3 by section 224.’’. 

4 (c) CLERICAL AMENDMENT.—The table of sections 

5 for part VII of subchapter B of chapter 1 of such Code 

6 is amended by striking the last item and inserting the fol7 lowing new items: 

‘‘Sec. 224. Education costs of veterans’ survivors and dependents. 

‘‘Sec. 225. Cross reference.’’. 

8 (d) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2000, for amounts paid or incurred for edu11 cation furnished after September 11, 2001. 

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