Section 1 Short title
This Act may be cited as the “Student Loan Interest Tax Deduction Expansion Act”.
Student Loan Interest Tax Deduction Expansion Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the dollar and income limitations on the deduction for student loan interest.
Sec. 2 Increase in dollar limitation and income limitation on student loan interest deduction
Increase in dollar limitation on student loan interest deduction— Paragraph (1) of section 221(b) of the Internal Revenue Code of 1986 is amended by striking “$2,500” and inserting “$7,500 ($15,000 in the case of a joint return)”.
Increase in income limitation on student loan interest deduction— Paragraph (2) of section 221(b) of such Code is amended to read as follows:
“(2) Limitation based on modified adjusted gross income
“(A) In general—No deduction shall be allowed under subsection (a) to a taxpayer with a modified adjusted gross income in excess of $100,000 (twice such amount in the case of a joint return).
“(B) Modified adjusted gross income—The term “modified adjusted gross income” means adjusted gross income determined—
“(i) without regard to this section and sections 199, 222, 911, 931, and 933, and
“(ii) after application of sections 86, 135, 137, 219, and 469.”
Conforming amendment— Paragraph (1) of section 221(f) of such Code is amended to read as follows:
“(1) In general—In the case of a taxable year beginning after 2020, the $100,000 amount in subsection (b)(2)(A) shall each be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2019” for “calendar year 2016” in subparagraph (A)(ii) thereof.”
Effective date— The amendments made by this section shall apply to taxable years ending after December 31, 2019.