Ackerman Calls for Congress to Reinstate College Tuition Tax Deduction

U.S. Rep. Gary Ackerman, D-Bayside, said he has introduced a bill that would reinstate tax relief to help millions of students who are struggling to pay for college.

The American College Tuition Tax Relief Act allows students and parents to deduct college tuition costs as well as expenses for books, supplies, student activity fees and equipment. But the deduction, which was first instated in 2001, expired on Dec. 31.

“This deduction has provided critical relief to those who are struggling to afford a college education and Congress should never have allowed it to expire,” said Ackerman. “It is essential that Congress take action to restore this vital deduction so that students and hard working middle class families trying to pay for college can continue to receive this vital benefit and not face a tax increase.”

Under the legislation, a maximum tax deduction of $4,000 would be allowed for individuals with an income of up to $65,000 or a joint income of $130,000.

Those who earn between $65,000 and $80,000 – or a $160,000 joint income – can receive $2,000. The bill would extend the deduction through 2016.

Students are eligible if they attend two or four-year colleges, universities, vocational schools or other postsecondary institutions.

Ackerman’s bill is currently pending in the House’s Ways and Means Committee.