Congress·In Committee·S. 4119

Bipartisan Senate Bill Would Double Student Loan Interest Tax Deduction for Married Couples

Student Loan Marriage Penalty Elimination Act of 2026

8 days ago·View on Congress.gov·Read full text

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Key Points

This bill fixes a "marriage penalty" in the tax code. Right now, both single filers and married couples filing jointly can only deduct up to $2,500 in student loan interest. Under this bill, each spouse gets their own $2,500 cap, so a married couple could deduct up to $5,000 total.
From policy text
“The interest taken into account with respect to a taxpayer for a taxable year under subsection (a) for indebtedness incurred by an individual shall not exceed $2,500.”
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The bill amends Section 221 of the Internal Revenue Code to apply the student loan interest deduction limit separately to each spouse, rather than once per tax return. It also includes a rule to prevent anyone from claiming the same deduction twice under different tax provisions.
From policy text
“No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter.”
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The bill has bipartisan backing from two Democrats (Warnock and Bennet) and two Republicans (Lankford and Lummis), suggesting it addresses a practical tax fairness issue rather than the more divisive student loan cancellation debate.
From policy text
“Mr. Warnock (for himself, Mr. Lankford, Ms. Lummis, and Mr. Bennet) introduced the following bill; which was read twice and referred to the Committee on Finance”
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If enacted, the new deduction rules would kick in for tax years beginning after December 31, 2026. That means married couples would first see the benefit when filing their 2027 taxes, likely in early 2028.
From policy text
“The amendments made by this section shall apply to taxable years beginning after December 31, 2026.”
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This change is designed to help married couples where both spouses carry student debt. Currently, getting married effectively cuts the per-person deduction in half for dual-borrower couples, creating a financial disincentive to marry.

TaxesEducation

Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions

Mar 17, 2026Senate

Read twice and referred to the Committee on Finance.

Mar 17, 2026

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

2027-01-01

New deduction rules take effect for married couples

Starting with their 2027 tax returns (filed in early 2028), married couples where both spouses have student loans could each claim up to $2,500 in student loan interest deductions, for a combined total of $5,000.

Related News

2 articles

WisPolitics·11 months ago

Rep. Grothman: Reintroduces bipartisan student loan marriage penalty elimination act

Representative Glenn Grothman (R-WI) is joined by Representatives Suzan DelBene (D-WA), Mary Miller (R-IL), and Danny K. Davis (D-IL) to reintroduce legislation that would ensure student loan interest is tax-deductible for each spouse independently, removing a government-imposed marriage penalty.

Seehafer News·over 2 years ago

Congressman Grothman, Bipartisan Co-Authors Introduce Student Loan Marriage Penalty Elimination Act

The measure would amend the tax code to protect marriage by ensuring that student loan interest is tax-deductible for each spouse independently. Currently, married couples filing jointly are limited to a single $2,500 deduction, whereas two single individuals could claim $5,000 total.