and secondary education expenses taken into
account for a taxable year under this section by
reason
of
paragraph
(1)
shall
not
exceed
$3,000.
‘‘(B)
COORDINATION.—For
purposes
of
this section—
‘‘(i) the dollar limitations under sub-
section (b) shall not apply to qualified ele-
mentary and secondary education expenses,
and
‘‘(ii) qualified elementary and sec-
ondary education expenses shall not be
taken into account for purposes of apply-
ing the applicable dollar limit under sub-
section (b).
‘‘(3)
DEFINITIONS.—For
purposes
of
this
subsection—
‘‘(A) QUALIFIED ELEMENTARY AND SEC-
ONDARY
EDUCATION
EXPENSES.—The
term
‘qualified elementary and secondary education
expenses’ has the same meaning given to such
term by section 530(b)(4), except that—
‘‘(i) such term shall not include room
and board,
‘‘(ii) subparagraph (A)(i) thereof shall
be applied by including enrollment or at-
tendance at a home school (as determined
under State law), and
‘‘(iii) such section shall be applied—
‘‘(I) by substituting ‘individual’
for
‘designated
beneficiary
of
the
trust’ in subparagraph (A)(i) thereof,
and
‘‘(II) by substituting ‘individual
and the individual’s family during any
of the years the individual’ for ‘bene-
ficiary and the beneficiary’s family
during any of the years the bene-
ficiary’ in subparagraph (A)(iii) there-
of.
‘‘(B)
ADJUSTED
GROSS
INCOME.—Ad-
justed gross income shall be determined under
subsection (b)(2)(C).’’.
(b) TECHNICAL AMENDMENT.—The heading of sec-
tion 62(a)(18) of such Code is amended by striking
‘‘HIGHER EDUCATION’’ and inserting ‘‘QUALIFIED TUI-
TION AND RELATED’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2002.
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Back to School Tax Re-
lief Act of 2002’’.
SEC. 2. DEDUCTION FOR ELEMENTARY AND SECONDARY
EDUCATION EXPENSES.
(a) IN GENERAL.—Section 222 of the Internal Revenue
Code of 1986 (relating to qualified tuition and related ex-
penses) is amended by redesignating subsection (e) as sub-
section (f) and by inserting after subsection (d) the fol-
lowing new subsection:
‘‘(e) ELEMENTARY AND SECONDARY EDUCATION EX-
PENSES.—
‘‘(1) IN GENERAL.—In the case of a taxpayer
whose adjusted gross income for the taxable year does
not exceed $20,000 ($40,000 in the case of a joint re-
turn), qualified tuition and related expenses shall in-
clude the qualified elementary and secondary edu-
cation expenses paid by the taxpayer during the tax-
able year.
‘‘(2) DOLLAR LIMITATION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the amount of qualified elementary
and secondary education expenses taken into ac-
count for a taxable year under this section by
reason of paragraph (1) shall not exceed $3,000.
‘‘(B) COORDINATION.—For purposes of this
section—
‘‘(i) the dollar limitations under sub-
section (b) shall not apply to qualified ele-
mentary and secondary education expenses,
and
‘‘(ii) qualified elementary and sec-
ondary education expenses shall not be
taken into account for purposes of applying
the applicable dollar limit under subsection
(b).
‘‘(3) 
DEFINITIONS.—For 
purposes 
of 
this
subsection—
‘‘(A) QUALIFIED
ELEMENTARY
AND
SEC-
ONDARY
EDUCATION
EXPENSES.—The 
term
‘qualified elementary and secondary education
expenses’ has the same meaning given to such
term by section 530(b)(4), except that—
‘‘(i) such term shall not include room
and board,
‘‘(ii) subparagraph (A)(i) thereof shall
be applied by including enrollment or at-