Expands the tax deduction for student loan interest to include payments toward principal and increases the deduction value.
The GRADUATE Act amends the Internal Revenue Code to expand the deduction for student loan interest to include payments toward principal. It increases the deduction value to a maximum of $10,000 plus $500 for each dependent. The deduction is limited based on modified adjusted gross income, with thresholds set at $125,000 for individuals and $250,000 for joint filers. The changes apply to taxable years beginning after December 31, 2025.
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