(Washington, D.C.) – Representatives Glenn Grothman (R-WI), Suzan DelBene (D-WA), Mary Miller (R-IL), and Danny K. Davis (D-IL) introduced H.R. 5920, the Student Loan Marriage Penalty Elimination Act, which would amend the tax code to protect marriage by ensuring that student loan interest is tax-deductible for each spouse independently. This bill has received endorsements from the National Taxpayers Union (NTU), the Congressional Family Caucus, Family Research Council, and Third Way.
Grothman, DelBene, Miller, and Davis are joined by 12 bipartisan cosponsors, including Representatives Troy Carter (D-LA), Josh Gottheimer (D-NJ), Debbie Lesko (R-AZ), Sheila Jackson Lee (D-TX), Greg Steube (R-FL), Jake LaTurner (R-KS), Terri Sewell (D-AL), Eric Swalwell (D-CA), Matt Gaetz (R-FL), Jimmy Gomez (D-CA), Salud Carbajal (D-CA), and David Trone (D-MD).
“When it comes to deducting student loan interest, as with so many areas, the government is discouraging marriage,” said Grothman. “I’m proud to introduce the Student Loan Marriage Penalty Elimination Act to alleviate American households of an unnecessary marriage penalty in the arena of student loans.
“If you and your spouse were not married and both had a student loan, each individual could receive up to a $2,500 deduction, for a total of $5,000. When married and filing jointly, their collective deduction is $2,500. My bill will rectify this anti-marriage provision.
“Separately applying the $2,500 deductible for each spouse in a marriage is a common-sense approach that not only reduces financial stress but also removes a barrier for more young couples to get married. Under no circumstances should our tax policy discriminate against the nuclear family.”
“Higher education is a critical path to economic security,” said Davis. “Unfortunately, Americans collectively struggle under $1.77 trillion in crushing student loan debt, with an average $37,338 in federal student loan debt and $54,921 in private student loan debt. I am proud to join my colleagues in leading this bill that would double the student loan interest deduction for married couples filing jointly. Congress must take every opportunity to ease the heavy financial burden on student loan borrowers.”
“The government has a compelling interest to promote strong, healthy families, and we shouldn’t be penalizing young couples for getting married. As chairwoman of the Congressional Family Caucus, I am proud to support Rep. Grothman’s Student Loan Marriage Penalty Elimination Act,” said Miller.
“Debt burdens can often prevent or slow people from starting a family. While we must make college more affordable overall, the Student Loan Marriage Penalty Elimination Act is a smart step in the right direction that will help families,” said DelBene. “Ending the marriage penalty for student loan borrowers would help alleviate some of the financial burden faced by many couples and makes higher education more accessible for families.”
“National Taxpayers Union is proud to support the Student Loan Marriage Penalty Elimination Act of 2023,” said Nicholas Johns, Senior Policy and Government Affairs Manager at NTU. “This commonsense legislation will remove the undue burden that current law places upon borrowers that become married. By rectifying this issue, married borrowers will no longer be penalized in their taxes simply because of marital status. National Taxpayers Union applauds Rep. Grothman for his leadership on this issue.”
Background Information
Currently, when taxes are filed individually, interest on student loan debt, both public and private, is tax deductible up to $2,500 per person. For two people filing separately, the maximum deduction would be $5,000. Current law, however, penalizes married couples by restricting both spouses from taking the deduction for their loan and only allowing a maximum of $2,500 combined – even if both spouses would separately qualify.
The Student Loan Marriage Penalty Elimination Act would end this unfair tax treatment of student loan interest against married couples by allowing married couples filing a joint tax return to apply the $2,500 limitation on the tax deduction for student loan interest separately to each spouse, ensuring they can receive a maximum of $5,000 in deductions and eliminating the penalty they are currently paying upon getting married.
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