I have been going through this forum and it has really helped me solve a lot of questions. Just one thing I could not find an answer to.

If I have been repaying a student loan (in India) in 2007 with considerable interest payment over the year, can I claim that interest in 1040NR/1040NR-EZ as deduction? I am a citizen of India and was on F1 till Oct 2007 when my status changed to H1-B. I am still planning to use 1040NR-EZ.

Also just in case I am able to deduct the interest paid for the loan, what proof do I need to furnish to IRS. The loan was taken from a bank in India.

Thanks a lot for the help,
Harshil

No the interest on the loan taken from an Indian bank is not deductible, unless the bank made payments directly to your school for tuition fees.

No the interest on the loan taken from an Indian bank is not deductible, unless the bank made payments directly to your school for tuition fees.

So if I have a student loan from a foreign government (NZ) that paid tuition directly to the institution (in NZ). Can I deduct the interest accrued for 2008 on my 2008 US tax return?

It must be U.S. institution. You will get 1098-T for tuition and fees paid from the educational institution.

It must be U.S. institution. You will get 1098-T for tuition and fees paid from the educational institution.

Thanks MukatA!