Back to School Act of 2010 - Amends the Internal Revenue Code to allow individual taxpayers who are age 55 or older an income-based tax credit for up to $2,000 of qualified tuition and related expenses, plus 25% of such expenses between $2,000 and $4,000. Adjusts the amount of such credit for inflation beginning after 2011.
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5557 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5557
To amend the Internal Revenue Code of 1986 to allow an increased credit
against tax for tuition and related expenses of certain individuals age
55 and older.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 17, 2010
Ms. Giffords (for herself and Mr. Latham) 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 an increased credit
against tax for tuition and related expenses of certain individuals age
55 and older.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Back to School Act of 2010''.
SEC. 2. BACK TO SCHOOL CREDIT.
(a) In General.--Section 25A of such Code is amended by
redesignating subsection (j) as subsection (k) and by inserting after
subsection (i) the following new subsection:
``(j) Back to School Credit.--
``(1) Amount of credit.--In lieu of the credit allowed
under subsection (a), on the election of an eligible
individual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to
the sum of--
``(A) so much of the qualified tuition and related
expenses paid by the taxpayer during the taxable year
(for education furnished during any academic period
beginning in such taxable year) as does not exceed
$2,000, plus
``(B) 25 percent of such expenses so paid as
exceeds $2,000 but does not exceed $4,000.
``(2) Limitation based on modified adjusted gross income.--
``(A) In general.--The amount which would (but for
this paragraph) be taken into account under paragraph
(1) for the taxable year shall be reduced (but not
below zero) by the amount determined under subparagraph
(B).
``(B) Amount of reduction.--The amount determined
under this subparagraph is the amount which bears the
same ratio to the amount which would be so taken into
account as--
``(i) the excess of--
``(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
``(II) the applicable amount under
subparagraph (D), bears to
``(ii) $10,000 ($20,000 in the case of a
joint return).
``(C) Modified adjusted gross income.--For purposes
of this paragraph, the term `modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year increased by any amount excluded
from gross income under section 911, 931, or 933.
``(D) Applicable amount.--The applicable amount
under this subparagraph is--
``(i) in the case of a joint return, 200
percent of the dollar amount in effect under
clause (ii) for the taxable year, and
``(ii) in any other case, $60,000.
``(3) Definitions.--For purposes of this subsection--
``(A) Eligible individual.--The term `eligible
individual' means any individual--
``(i) who has attained the age of 55, and
``(ii) with respect to whom qualified
tuition and related expenses have not been paid
during the 5-taxable year period ending with
the taxable year immediately preceding the
first taxable year for which such individual
elects the application of this subsection.
``(B) Qualified tuition and related expenses.--
Notwithstanding subsection (f), the term `qualified
tuition and related expense' means any expense of a
type which is taken into account in determining the
cost of attendance (as defined in section 472 of the
Higher Education Act of 1965, as in effect on the date
of the enactment of this section) of a student who is--
``(i) the taxpayer, or
``(ii) the taxpayer's spouse.
``(4) Inflation adjustment.--
``(A) Credit limitation.--
``(i) In general.--In the case of a taxable
year beginning after 2011, each of the $2,000
amounts and the $4,000 amount under paragraph
(1) shall be increased by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) 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 2010' for
`calendar year 1992' in subparagraph
(B) thereof.
``(ii) Rounding.--If any amount as adjusted
under clause (i) is not a multiple of $100,
such amount shall be rounded to the next lowest
multiple of $100.
``(B) Income limits.--
``(i) In general.--In the case of a taxable
year beginning after 2011, the $80,000 amount
in paragraph (2)(D)(ii) shall each be increased
by an amount equal to--
``(I) such dollar amount,
multiplied by
``(II) 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 2010' for
`calendar year 1992' in subparagraph
(B) thereof.
``(ii) Rounding.--If any amount as adjusted
under clause (i) is not a multiple of $1,000,
such amount shall be rounded to the next lowest
multiple of $1,000.
``(5) Denial of credit if student convicted of a felony
drug offense.--A rule similar to the rule of subsection
(b)(2)(D) shall apply for purposes of this subsection.''.
(b) Adjustment for Certain Scholarships, etc.--Paragraph (2) of
section 25A(g) of such Code is amended--
(1) by inserting ``or (j)'' after ``subsection (a)'', and
(2) by inserting ``, and paragraphs (1) and (2) of
subsection (j)'' after ``and (d)''.
(c) Treatment of Expenses Paid by Dependent.--Subparagraph (A) of
section 25A(g)(3) of such Code is amended by inserting ``or (j)'' after
``subsection (a)''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2010.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR H4600-4601)
Referred to the House Committee on Ways and Means.
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