I
104TH CONGRESS
1ST SESSION
H. R. 1272
To amend the Internal Revenue Code of 1986 to allow a deduction for
the payment of postsecondary education expenses.
IN THE HOUSE OF REPRESENTATIVES
MARCH 21, 1995
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 220 as section 221 and
by inserting after section 219 the following new section:
‘‘SEC. 220. 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 during any period shall be reduced (before
the application of subsection (b)) by any amounts
received by such individual during such period as—
‘‘(A) a qualified scholarship (within the
meaning of section 117(b)) which under section
117 is not includible in gross income, or
‘‘(B) an educational assistance allowance
under chapters 30, 31, 32, 34, or 35 of title 38
of the United States Code.
‘‘(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