TRANSITION FROM DEDUCTION FOR QUALIFIED TUITION AND RELATED EXPENSES TO INCREASED INCOME LIMITATION ON LIFETIME LEARNING CREDIT.

SEC. 104. TRANSITION FROM DEDUCTION FOR QUALIFIED TUITION AND RELATED EXPENSES TO INCREASED INCOME LIMITATION ON LIFETIME LEARNING CREDIT. (a) Increased Income Limitations for Phaseout of Lifetime Learning Credit.— (1) [26 U.S.C. 25A] In general.—Section 25A(d) is amended by striking paragraphs (1) and (2), by redesignating paragraph (3) as paragraph (2), and by inserting before paragraph (2) (as so redesignated) the following new paragraph: “(1) In general.—The American Opportunity Tax Credit and the Lifetime Learning Credit shall each (determined without regard to this paragraph) be reduced (but not below zero) by the amount which bears the same ratio to each such credit (as so determined) as— “(A) the excess of— “(i) the taxpayer’s modified adjusted gross income for such taxable year, over “(ii) $80,000 ( $160,000 in the case of a joint return), bears to “(B) $10,000 ( $20,000 in the case of a joint return).” . (2) Conforming amendment.—Section 25A is amended by striking subsection (h). (b) Repeal of Deduction for Qualified Tuition and Related Expenses.— (1) [26 U.S.C. 211] In general.—Part VII of subchapter B of chapter 1 is amended by striking section 222 (and by striking the item relating to such section in the table of sections for such part). (2) Conforming amendments.— (A) Section 62(a) is amended by striking paragraph (18). (B) Section 74(d)(2)(B) is amended by striking “222,”. (C) Section 86(b)(2)(A) is amended by striking “222,”. (D) Section 135(c)(4)(A) is amended by striking “222,”. (E) Section 137(b)(3)(A) is amended by striking “222,”. (F) Section 219(g)(3)(A)(ii) is amended by striking “222,”. (G) Section 221(b)(2)(C)(i) is amended by striking “222,”. (H) Section 469(i)(3)(E)(iii) is amended by striking “222,”. (c) [26 U.S.C. 25A note] Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2020.