I
105TH CONGRESS
1ST SESSION
H. R. 382
To amend the Internal Revenue Code of 1986 to allow a deduction for
the payment of postsecondary education expenses.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 9, 1997
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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. DEDUCTION FOR POSTSECONDARY EDUCATION
EXPENSES.
(a) DEDUCTION ALLOWED.—Part VII of subchapter
B of chapter 1 of the Internal Revenue Code of 1986 (re-
lating to additional itemized deductions for individuals) is
amended by redesignating section 221 as section 222 and
by inserting after section 220 the following new section:
‘‘SEC. 221. POSTSECONDARY EDUCATION EXPENSES.
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an
individual, there shall be allowed as a deduction an
amount equal to the qualified postsecondary education ex-
penses paid by the taxpayer during the taxable year.
‘‘(b) DOLLAR LIMITATIONS.—
‘‘(1) PER STUDENT.—The aggregate payments
during the taxable year for the qualified postsecond-
ary education expenses of each individual which may
be taken into account under subsection (a) shall not
exceed $10,000.
‘‘(2) PER TAXPAYER.—The amount allowed as
a deduction under subsection (a) for the taxable year
shall not exceed $20,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
POSTSECONDARY
EDUCATION
EXPENSES.—The term ‘qualified postsecondary edu-
cation expenses’ means qualified tuition and related
expenses of—
‘‘(A) the taxpayer, or
‘‘(B) an individual who is the spouse, or a
dependent, of the taxpayer for the taxable year
in which such expenses are incurred,
for attendance at an eligible educational institution.
‘‘(2) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES.—The term ‘qualified tuition and related ex-
penses’ means—
‘‘(A) tuition and fees required for enroll-
ment or attendance at an eligible educational
institution,
‘‘(B) fees, books, supplies, and equipment
required for courses of instruction at such an
institution, and
‘‘(C) reasonable living expenses while away
from home.
Such term shall not include expenses which are
treated as not described in section 135(c)(2)(A) by
reason of section 135(c)(2)(B).
‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.—
The term ‘eligible educational institution’ has the
meaning given to such term by section 135(c)(3).
‘‘(d) COORDINATION WITH OTHER PROVISIONS.—
‘‘(1) NO DOUBLE BENEFIT.—
‘‘(A) IN GENERAL.—No deduction shall be
allowed under subsection (a) for qualified post-
secondary education expenses with respect to
which a deduction is allowed under any other
provision of this chapter.
‘‘(B) SAVINGS BOND EXCLUSION.—A de-
duction shall be allowed under subsection (a)
for qualified postsecondary education expenses
only to the extent the amount of such expenses
exceeds the amount excludable under section
135 for the taxable year.
‘‘(e) SPECIAL RULES.—
‘‘(1) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS
AND
VETERANS
BENEFITS.—The amounts
otherwise taken into account under subsection (a) as
qualified postsecondary education expenses of any
individual shall be reduced (before the application of
subsection (b)) by the sum of the amounts referred
to in section 135(d)(1) which are received with re-
spect to such individual for the taxable year.
‘‘(2) ELIGIBLE
COURSES.—Amounts paid for
qualified postsecondary education expenses of any
individual shall be taken into account under sub-
section (a) only to the extent such expenses are at-
tributable to courses of instruction for which credit
is allowed toward a degree by an institution of high-
er education or toward a certificate of required
course work at a vocational school.
‘‘(3) INDIVIDUAL MUST BE AT LEAST A HALF-
TIME
STUDENT.—No deduction shall be allowed
under subsection (a) for amounts paid during the
taxable year for qualified postsecondary education
expenses with respect to any individual unless that
individual, during any 4 calendar months during the
calendar year in which the taxable year of the tax-
payer begins, is at least a half-time student at an el-
igible education institution.
‘‘(4) TAXPAYER WHO IS DEPENDENT OF AN-
OTHER TAXPAYER.—No deduction shall be allowed
to a taxpayer under subsection (a) for amount paid
for the education of such taxpayer if such taxpayer
is a dependent of another person for a taxable year
beginning in the calendar year in which the taxable
year of the taxpayer begins.
‘‘(5) SPOUSE.—No deduction shall be allowed
under subsection (a) for amounts paid during the
taxable year for qualified postsecondary education
expenses for the spouse of the taxpayer unless—
‘‘(A) the taxpayer is entitled to an exemp-
tion for his spouse under section 151(b) for the
taxable year, or
‘‘(B) the taxpayer files a joint return with
his spouse for the taxable year.’’
(b) DEDUCTION
ALLOWED
IN
COMPUTING
AD-
JUSTED GROSS INCOME.—Section 62(a) of such Code is
amended by inserting after paragraph (16) the following
new paragraph:
‘‘(17) 
POSTSECONDARY
EDUCATION
EX-
PENSES.—The deduction allowed by section 221.’’
(c) CONFORMING AMENDMENT.—The table of sec-
tions for part VII of subchapter B of chapter 1 of such
Code is amended by striking the item relating to section
221 and inserting:
‘‘Sec. 221. Postsecondary education expenses.
‘‘Sec. 222. Cross reference.’’
(d) EFFECTIVE DATES.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1996.
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