H.R. 3196 - Student Loan Marriage Penalty Elimination Act of 2021

117TH CONGRESS
1ST SESSION

H.R. 3196

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.

IN THE HOUSE OF REPRESENTATIVES

MAY 13, 2021

Mrs. HARTZLER introduced the following bill;
which was referred to the Committee on _____

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.

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 "Student Loan Marriage Penalty Elimination Act of 2021".

SEC. 2. STUDENT LOAN INTEREST DEDUCTION LIMITATION APPLIED SEPARATELY TO EACH SPOUSE.

(a) 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.".

(b) CONFORMING AMENDMENTS. — Section 221 of such Code is amended —

(1) in subsection (b), by striking the heading and inserting "DOLLAR LIMITATIONS", and

(2) 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.".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2020.