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Saturday, July 29, 2023
The § 221 Increased Training Mortgage Curiosity Deduction And The Pupil Debt Disaster
Brianna C. Frontuto (J.D. 2023, West Virginia), Observe, Shifting the Scope towards College students: An Evaluation of Tax Code Therapy of the Increased Training Mortgage Curiosity Deduction, 125 W. Va. L. Rev. 691 (2022):
In a nation the place training is held within the highest regard however given the bottom precedence, america continues to enlarge a gaping gap within the training system: pupil mortgage debt, a disaster sweeping throughout the nation and affecting almost each particular person in america. Increased training prices have sky-rocketed, and the increasing administrations and complicated initiatives don’t present assurance that this can change any time quickly.
Congress has positioned tax incentives within the Inner Income Code (“the Code”) to encourage the pursuit of upper training whereas offering a profit for doing so. Particularly, § 221 of the Code permits particular person taxpayers to deduct curiosity paid on their pupil loans, through the taxable 12 months, from their taxable revenue. Nonetheless, the worth of § 221 wavers when evaluated for its utility, primarily based on effectivity, fairness, and ease to particular person taxpayers. Additional, the breadth of the scholar mortgage debt disaster has muted the consequences § 221 might have supplied. This Observe will consider the § 221 deduction framework and focus on two potential options to deal with the § 221 deduction relating to the scholar mortgage debt disaster.
https://taxprof.typepad.com/taxprof_blog/2023/07/the-section-221-higher-education-loan-interest-deduction-and-the-student-debt-crisis.html
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