Summary
Changes tax law to let each spouse in a married couple deduct up to $2,500 in student loan interest, doubling the possible deduction for the couple.
What problem does this solve?
Currently, married couples can only deduct a total of $2,500 in student loan interest, the same as a single person. This bill allows each spouse to deduct up to $2,500, potentially doubling the deduction to $5,000 for the couple.
Who does this affect?
- Married couples with student loan debt
What does this bill do?
Applies deduction limit to each spouse
Changes the $2,500 student loan interest deduction limit to apply to each spouse individually, rather than to the couple as a whole.
Simplifies double benefit rule
Updates the rule that prevents taking the same deduction twice to be more general, removing specific language about married couples.
Sets an effective date
Makes the changes apply to tax years starting after December 31, 2026.
What is the real world impact?
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Reduces a tax penalty for getting married
Fixes a part of the tax code that can cause married couples with student loans to pay more in taxes than if they had stayed single. It makes the tax system fairer for them.
When does this start?
The changes would apply to tax years beginning after December 31, 2026.