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-   -   Indian - OPT - State change - Student loan Claim (https://www.askmehelpdesk.com/showthread.php?t=82925)

  • Apr 15, 2007, 04:44 PM
    vadsal
    Indian - OPT - State change - Student loan Claim
    Hello,

    To any one answering these 3 question, I would appreciate it as it is of immense significance to me, I am late filing Taxes for 2006. Thank you :)

    Questions for 2006 TAX return

    F1 - 12/20/03 - 1/15/07
    OPT - 1/15/06 - 1/15/07 - total W2 income $ 11600 (only income in 2006)
    Q1) I am Indian can I claim the $8200 Indian Tax treaty deduction?

    12/20/03 - 4/26/06 Ohio resident
    *Granted Federal Student loan AES
    -- started accruing interest on my US Federal Loan since 7/06 = $1,240.04 in 2006
    *I paid interest on Indian bank Student loan in 2006 [In 2005 I claimed deduction on 1040NR, provided a letter from the bank & was granted deduction]

    Q2) Can I claim student loans' interests paid deductions in 2006 on OPT using form 1098e? Which form should I use to file? 1040NR or 1040 NREZ or any other? :confused:

    4/26/06 - 7/14/06 W2 in NJ
    Q3) Do I have to file Ohio Tax returns since I moved to NJ in 04/06 even though I did not report any income in OH in 06?:confused:

    These answers need to be in before end of Monday Thank you!
  • Apr 21, 2007, 08:03 AM
    AtlantaTaxExpert
    Q1) In my opinion, you cannot deduct student loan interest from a foreign bank. The deduction was initially allowed, but as the IRS reviews the return, expect that they will challenge that deduction.

    Q2) Yes, you CAN deduct student loan interest documented with Form 1098-E, provided you do not make too much money.

    Q3) If no income was earned in 2006 in Ohio, then no Ohio state tax return is required.

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