TEST Funds Relief Act

TEST Funds Relief Act - Amends the Internal Revenue Code to allow an income tax deduction (from gross income) for contributions to a tax-exempt school trust fund established to pay the educational expenses of an eligible beneficiary of such fund at a postsecondary educational institution. Limits the amount of such deduction for any taxable year to $1,000 times the number of beneficiaries of the fund under age 32 for whom the taxpayer is entitled to a personal tax exemption.

Requires the termination of a school trust fund and the forfeiture of its tax-exempt status if contributions in excess of the amount allowed as a deduction under this Act are made to the fund, if trust funds are used for purposes other than the payment of educational expenses, or if there is no eligible beneficiary of the fund at the beginning of the taxable year.