To amend the Internal Revenue Code of 1986 to allow married individuals who are legally separated and living apart to exclude from gross income the income from United States savings bonds used to pay higher education tuition and fees.

Amends the Internal Revenue Code to permit certain married individuals who are legally separated and living apart and who file separate tax returns to exclude from gross income the income from U.S. savings bonds used for higher education tuition and fees.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3460 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 3460

To amend the Internal Revenue Code of 1986 to allow married individuals 
who are legally separated and living apart to exclude from gross income 
    the income from United States savings bonds used to pay higher 
                      education tuition and fees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2005

 Mr. Andrews 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 married individuals 
who are legally separated and living apart to exclude from gross income 
    the income from United States savings bonds used to pay higher 
                      education tuition and fees.

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

SECTION 1. CERTAIN MARRIED INDIVIDUALS FILING SEPARATE RETURNS ALLOWED 
              TO EXCLUDE INCOME FROM UNITED STATES SAVINGS BONDS USED 
              TO PAY HIGHER EDUCATION TUITION AND FEES.

    (a) In General.--Subsection (d) of section 135 of the Internal 
Revenue Code of 1986 (relating to special rules for exclusion of income 
from United States savings bonds used to pay higher education tuition 
and fees) is amended by redesignating paragraph (4) as paragraph (5) 
and by inserting after paragraph (3) the following new paragraph:
            ``(4) Certain married individuals living apart.--For 
        purposes of this section, an individual shall not be considered 
        as married in a taxable year if such individual--
                    ``(A) is married and files a separate return for 
                such taxable year,
                    ``(B) as of the close of such taxable year, is 
                legally separated from the individual's spouse, and
                    ``(C) was not a member of the same household as the 
                individual's spouse at any time during the taxable 
                year.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2004.
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