Section 1 Short title
This Act may be cited as the “Student Loan Marriage Penalty Elimination Act of 2021”.
Student Loan Marriage Penalty Elimination Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to allow married couples to apply the student loan interest deduction limitation separately to each spouse, and for other purposes.
Sec. 2 Student loan interest deduction limitation applied separately to each spouse
In general— Section 221(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:
“(1) In general—The interest taken into account with respect to a taxpayer for a taxable year under subsection (a) for indebtedness incurred by an individual shall not exceed $2,500.”
Conforming amendments— Section 221 of such Code is amended—
in subsection (b), by striking the heading and inserting “Dollar limitations”, and
by amending subsection (e) to read as follows:
“(e) Denial of double benefit—No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2020.