About Robert Longley Expertise I`ll answer questions on Congress, the Constitution, Supreme Court, government agencies, and other many other process of the federal government.
Experience 15 years working in municipal government plus 3 years professional writing on subjects concerning the federal government.
Publications US Government Info/Resources on the About Network
http://usgovinfo.about.com
Education/Credentials B.S. Texas A&M University -- 1972
Question THIS QUESTION IS IN REGARDS TO THE STUDENT LOAN
INTERST TAX WRITEOFF. I UNDERSTAND THAT THE INCOME LEVEL WAS ABOLISHED. HOWEVER, ARE THERE ANY NEW RESTRICTIONS ADDED AS FAR AS THE DATES THESE STUDENT LOANS WERE TAKEN OUT? IS THERE A PHASE IN PERIOD? THANK YOU DR. JON OLIVERIO
Answer Hi Dr. Oliverio --
The final bill -- the conference report -- for the president's signature has not yet been published for public print. However, the version of the bill passed by the Senate stated this about student loans...
SEC. 412. ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN INCOME LIMITATION ON STUDENT LOAN INTEREST DEDUCTION.
(a) ELIMINATION OF 60-MONTH LIMIT-
(1) IN GENERAL- Section 221 (relating to interest on education loans), as amended by section 402(b)(2)(B), is amended by striking subsection (d) and by redesignating subsections (e), (f), and (g) as subsections (d), (e), and (f), respectively.
(2) CONFORMING AMENDMENT- Section 6050S(e) is amended by striking 'section 221(e)(1)' and inserting 'section 221(d)(1)'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply with respect to any loan interest paid after December 31, 2001, in taxable years ending after such date.
(b) INCREASE IN INCOME LIMITATION-
(1) IN GENERAL- Section 221(b)(2)(B) (relating to amount of reduction) is amended by striking clauses (i) and (ii) and inserting the following:
'(i) the excess of--
'(I) the taxpayer's modified adjusted gross income for such taxable year, over
'(II) $50,000 ($100,000 in the case of a joint return), bears to
'(ii) $15,000 ($30,000 in the case of a joint return).'.
(2) CONFORMING AMENDMENT- Section 221(g)(1) is amended by striking '$40,000 and $60,000 amounts' and inserting '$50,000 and $100,000 amounts'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply to taxable years ending after December 31, 2001.
SEC. 413. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER THE NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM AND THE F. EDWARD HEBERT ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.
(a) IN GENERAL- Section 117(c) (relating to the exclusion from gross income amounts received as a qualified scholarship) is amended--
(1) by striking 'Subsections (a)' and inserting the following:
'(1) IN GENERAL- Except as provided in paragraph (2), subsections (a)', and
(2) by adding at the end the following new paragraph:
'(2) EXCEPTIONS- Paragraph (1) shall not apply to any amount received by an individual under--
'(A) the National Health Service Corps Scholarship Program under section 338A(g)(1)(A) of the Public Health Service Act, or
'(B) the Armed Forces Health Professions Scholarship and Financial Assistance program under subchapter I of chapter 105 of title 10, United States Code.'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to amounts received in taxable years beginning after December 31, 2001.
###
I'm neither an attorney or a tax consultant, thus I won't try to interpret what that says. Many of the details of this massive peice of legislation will not become clear for months.
