What's happening
This bill allows New York taxpayers to deduct up to $5,000 in student loan payments from their state income tax.
Why it matters
Helps offset the financial burden of student loan repayment. By allowing taxpayers to deduct up to $5,000 in student loan payments, this bill directly reduces taxable income for those making payments, potentially saving them hundreds of dollars per year.
Broadens eligibility to include family borrowers. The deduction can apply not only to loans taken out for the taxpayer's own education, but also for loans incurred on behalf of a spouse or dependent, recognizing that families often share the burden of educational debt.
Addresses gaps in existing federal tax benefits. The deduction only applies to payments not already deductible on federal taxes, giving state-level relief to borrowers who may not fully benefit from federal student loan interest deductions due to income phase-outs or other limitations.
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Deduct Student Loan Payments
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to ways and means
- Referred to ways and means
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Deduct Student Loan Payments
In Senate Committee · Budget And Revenue · Sponsor Leroy Comrie
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
862
2019-2020 Regular Sessions
IN ASSEMBLY
January 11, 2019
Introduced by M. of A. SIMOTAS -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to authorizing a personal income tax deduction for student loan payments
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subsection (c) of section 612 of the tax law is amended by adding a new paragraph 44 to read as follows:
(44) Payment not in excess of five thousand dollars actually paid by an eligible borrower for student loan repayment, to the extent not deductible in determining federal adjusted gross income and not reimbursed. For the purposes of this paragraph, the following terms have the following meanings:
(i) "Student loans" means any indebtedness incurred by the taxpayer solely for any qualified education loan to the extent provided in section 221 of the Internal Revenue Code.
(ii) "Eligible borrower" shall mean a taxpayer who has incurred indebtedness on student loans as defined in subparagraph (i) of this paragraph on behalf of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred.
§ 2. This act shall take effect immediately and shall apply to taxable years beginning on or after January 1, 2020.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01394-01-9
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.