What's happening
This bill allows New York residents to deduct educational loan payments from state taxes, with limits based on filing status and income.
Why it matters
Targets middle- and lower-income borrowers. The deduction is available only to those below specific income thresholds ($160,000 for joint filers, $120,000 for heads of household, $80,000 for singles), focusing the benefit on residents most likely to be financially strained by student debt.
Recognizes both principal and interest. Unlike some deductions that apply only to interest, this bill allows taxpayers to deduct both the principal and interest paid on qualifying educational loans, providing potentially larger tax relief.
Sets clear maximum deductions by filing status. The law establishes different caps depending on whether a taxpayer files jointly, as head of household, or individually (up to $8,000, $6,000, or $4,000 respectively), which could incentivize certain filing strategies and affect household tax planning.
Aligns with existing definitions to avoid ambiguity. By referencing established definitions for “educational loan” and “institution of higher education,” the bill reduces confusion and potential disputes about which loans or schools qualify, making compliance and enforcement more straightforward.
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Who cares
Headline styles
Increase Student Loan Tax Deductions
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6056
2017-2018 Regular Sessions
IN ASSEMBLY
February 23, 2017
Introduced by M. of A. LUPINACCI -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to deduction for educational loan payments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (d) of section 615 of the tax law is amended by adding a new paragraph 5 to read as follows:
(5) In the case of a taxpayer owing money on an educational loan, there shall be allowed as a deduction for the taxable year an amount equal to the principal and interest paid by the taxpayer during the taxable year on any educational loan incurred at an institution of higher education. The maximum deduction allowed in a given taxable year shall be as follows:
(A) eight thousand dollars for resident married individuals filing joint returns and resident surviving spouses;
(B) six thousand dollars for resident heads of households; and
(C) four thousand dollars for resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.
A taxpayer shall be eligible for the deduction only if his or her income is at or below the following amounts:
(A) one hundred sixty thousand dollars for resident married individuals filing joint returns and resident surviving spouses;
(B) one hundred twenty thousand dollars for resident heads of households; and
(C) eighty thousand dollars for resident unmarried individuals, resident married individuals filing separate returns and resident estates and trusts.
For purposes of this subparagraph:
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02980-01-7
A. 6056 2
(A) "Educational loan" shall have the same meaning as provided by subdivision four of section six hundred twenty of the education law;
(B) "Institution of higher education" shall have the same meaning as provided by paragraph three of subsection (t) of section six hundred six of the tax law.
§ 2. This act shall take effect immediately and apply to taxable years beginning on and after 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.