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View Full Version : Can I claim tax returns on money sent abroad for educational loan purposes?


windoc1
Feb 11, 2012, 05:41 PM
I am resident alien working on an exchange visitor (J1)visa. I have a lot of educational loans back home which I had to utilize in order to study in the Unites States and start working. I end up sending about $6000 a year to pay off my loans. Can I claim the amount on my tax returns?

AtlantaTaxExpert
Feb 15, 2012, 02:28 PM
If you got a loan to pay ONLY for tuition and fees at a U.S. college, then you can deduct the INTEREST on that loan (but NOT principal), even if it was with a foreign bank.

However, if you got a jumbo loan that paid for the tuition and fees AND other costs, such as travel, rent, food, etc. then THAT loan is NOT deductible in any way on your tax return.