I took education loan in India for my MS degree. I graduated in 2010 and I got got job in April 2011. I started paying interest on that loan (To my bank in India) after getting job.
1.Can this amount be deductible from my 2011 tax ?
2.Do I need to fill any separate form for this ?

Thanks for help in advance.

1. No

MukatA:

I have to disagree. I just reviewed the criteria for student loan interest, and nowhere did it dis-allow interest paid to a foreign bank.

The only dis-allowance was for interest paid to a "related party". I sincerely doubt that Sameersk is related to his bank in any way.

Sameersk:

This IS one restriction. The loan MUST be exclusively to pay for tuition and fees ONLY. If you used part of the loan to pay other expenses, like travel costs and living expenses, then, unfortunately, the interest is NOT deductible.

If you are a resident of the U.S. see Form 1042 and 1042S.

Yes, payment for student loan to foreign bank is deductible if the loan terms meet certain conditions set by IRS. I have not come across even a single example where such loan from Indian bank met the required conditions. And then it must also meet withholding requirements. Your U.S. Tax Return: Student Loan Interest Deduction (http://taxipay.blogspot.com/2008/03/student-loan-interest-deduction.html)

Thank you all for your replies.
AtlantaTaxExpert : I have used the loan only for my tuition and fees only. Which form particularly do I need to submit for this ?

There IS no particlar form. You claim it on Line #9 of Form 1040NR-EZ or Line #33 for Form 1040NR.

Note that you cannot claim MORE than $2,500 in interest.

To AtlantaTaxExpert : Hi AtlantaTaxExpert, I am looking for tax consultant for tax filing. How I can contact you?

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