Bill > S4119

This bill, titled the "Student Loan Marriage Penalty Elimination Act of 2026," aims to amend the Internal Revenue Code of 1986 to allow married couples to calculate the student loan interest deduction limitation separately for each spouse, rather than jointly. Currently, the law imposes a limit on the amount of student loan interest that can be deducted, and this bill proposes to change how this limit is applied when a couple files taxes jointly. Specifically, it modifies Section 221 of the Internal Revenue Code, which deals with the student loan interest deduction, by clarifying that the $2,500 limitation on deductible interest applies to each individual taxpayer. This change is intended to prevent situations where a married couple's combined income might reduce or eliminate their ability to deduct student loan interest, a scenario sometimes referred to as a "marriage penalty," and will take effect for tax years beginning after December 31, 2026.