A bill to amend the Internal Revenue Code of 1986 to increase the deduction for qualified higher education expenses to $10,000, and for other purposes.

Amends the Internal Revenue Code to change the permitted deduction for qualified higher education tuition and related expenses to: (1) $10,000 in the case of a taxpayer whose adjusted gross income is $65,000 or less ($130,000 in the case of a joint return); and (2) $5,000 in the case of a taxpayer earning above $65,000 up through $80,000 ($160,000 in the case of a joint return).

Applies this Act to payments made after December 31, 2001 (present law allows deductions of between $2,000 to $4,000 through 2005).

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2851 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2851

 To amend the Internal Revenue Code of 1986 to increase the deduction 
   for qualified higher education expenses to $10,000, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2002

Mr. Torricelli introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the deduction 
   for qualified higher education expenses to $10,000, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. DEDUCTION FOR QUALIFIED HIGHER EDUCATION EXPENSES INCREASED 
              TO $10,000.

    (a) In General.--Paragraph (2) of section 222(b) of the Internal 
Revenue Code of 1986 (relating to dollar limitation) is amended to read 
as follows:
            ``(2) Applicable dollar limit.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the applicable dollar amount shall be equal to--
                            ``(i) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $65,000 ($130,000 in the case of a 
                        joint return), $10,000,
                            ``(ii) in the case of a taxpayer not 
                        described in clause (i) whose adjusted gross 
                        income for the taxable year does not exceed 
                        $80,000 ($160,000 in the case of a joint 
                        return), $5,000, and
                            ``(iii) in the case of any other taxpayer, 
                        zero.
                    ``(B) Adjusted gross income.--For purposes of this 
                paragraph, adjusted gross income shall be determined--
                            ``(i) without regard to this section and 
                        sections 911, 931, and 933, and
                            ``(ii) after application of sections 86, 
                        135, 137, 219, 221, and 469.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made in taxable years beginning after December 31, 2001.
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