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 edu-
cation costs incurred by veterans’ survivors and depend-
ents who are in receipt of educational assistance under 
chapter 35 of title 38, United States Code. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. FINDINGS. 
The Congress finds that— 
(1) the United States owes a debt to those men 
and women who have lost their lives or have become 
completely and permanently disabled in the line of
duty while defending the Nation in the war on ter-
rorism; 
(2) the United States owes a debt to the fami-
lies of these fallen heroes for their sacrifices; and 
(3) one way to begin repaying this debt would 
be to ensure that the children of these fallen heroes 
have access to higher education. 
SEC. 2. DEDUCTION OF EDUCATION COSTS OF VETERANS’ 
SURVIVORS AND DEPENDENTS. 
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
additional itemized deductions for individuals) is amended 
by redesignating section 224 as section 225 and by insert-
ing after section 223 the following new section: 
‘‘SEC. 224. EDUCATION COSTS OF VETERANS’ SURVIVORS 
AND DEPENDENTS. 
‘‘(a) DEDUCTION ALLOWED.—In the case of an indi-
vidual, there shall be allowed as a deduction for the tax-
able year an amount equal to the amount paid by the tax-
payer during the taxable year (for education furnished to 
the eligible person during any academic period beginning 
in such taxable year) for qualified education expenses. 
‘‘(b) ELIGIBLE PERSON.—For purposes of subsection 
(a), the term ‘eligible person’ has the meaning given such
term by section 3501(a)(1) of title 38, United States 
Code. 
‘‘(c) QUALIFIED EDUCATION EXPENSES.—For pur-
poses of subsection (a)— 
‘‘(1) IN GENERAL.—The term ‘qualified edu-
cation expenses’ means expenses for educational as-
sistance to which the eligible person would be enti-
tled for a month under chapter 35 of title 38, 
United States Code, but for the maximum amount 
of educational assistance allowance payable for such 
month under section 3532 of such chapter. 
‘‘(2) COORDINATION WITH OTHER EDUCATION- 
RELATED BENEFITS.—The amount of qualified edu-
cation expenses for any taxable year shall be reduced 
by the sum of— 
‘‘(A) the amount excluded from gross in-
come under section 127, 135, 529, or 530 by 
reason of such expenses, and 
‘‘(B) the amount of any scholarship, allow-
ance, 
or 
payment 
described 
in 
section 
25A(g)(2).’’. 
(b) DEDUCTION ALLOWED WHETHER OR NOT INDI-
VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 
of section 62 of such Code is amended by inserting after 
paragraph (19) the following new paragraph:
‘‘(20) EDUCATION COSTS OF VETERANS’ SUR-
VIVORS AND DEPENDENTS.—The deduction allowed 
by section 224.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VII of subchapter B of chapter 1 of such Code 
is amended by striking the last item and inserting the fol-
lowing new items: 
‘‘Sec. 224. Education costs of veterans’ survivors and dependents. 
‘‘Sec. 225. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2000, for amounts paid or incurred for edu-
cation furnished after September 11, 2001. 
Æ