S. 4119Senate119th Congress (2025-2027)In Committee

Student Loan Marriage Penalty Elimination Act of 2026

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Updated March 25, 2026 at 4:07 AM UTC

The Student Loan Marriage Penalty Elimination Act of 2026 changes the tax code so married couples can each claim the full $2,500 student loan interest deduction separately, removing the current joint limit that creates a marriage penalty. It also adjusts related sections to prevent double‑dipping with other deductions. The law would apply to tax years starting after the end of 2026 and affects married taxpayers with qualifying student loan interest.

Key Provisions

Amends the student loan interest deduction limit so each spouse can claim up to $2,500 of interest paid on their own student loans, rather than a combined $2,500 limit for the couple.
Updates related language in the tax code to reflect the new “Dollar Limitations” heading and adds a rule that the deduction cannot be claimed if it is already allowed under another tax provision.
Sets the changes to take effect for tax years beginning after December 31, 2026.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

March 17, 2026

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SenateIntro Referral

Introduced in Senate

March 17, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

March 17, 2026

Bill Text

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Introduced in SenateIssued March 17, 2026

119th CONGRESS

2d Session

S. 4119

IN THE SENATE OF THE UNITED STATES

March 17, 2026

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

A BILL

To amend the Internal Revenue Code of 1986 to allow married couples to apply the student loan interest deduction limitation separately to each spouse, and for other purposes.

Short title

This Act may be cited as the Student Loan Marriage Penalty Elimination Act of 2026.

Student loan interest deduction limitation applied separately to each spouse

(a)

In general

Section 221(b)(1) of the Internal Revenue Code of 1986 is amended to read as follows:

(1)

In general

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.

(b)

Conforming amendments

Section 221 of such Code is amended—

(1)

in subsection (b), by striking the heading and inserting Dollar limitations, and

(2)

by amending subsection (e) to read as follows:

(e)

Denial of double benefit

No deduction shall be allowed under this section for any amount for which a deduction is allowable under any other provision of this chapter.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2026.