Hi

For the year 2005 I was on F1 status. I wanted to deduct my student loan payments. I paid a total interest of $1425 in year 2005. I tried filling the worksheet provided with form 1040 nr ez instructions. According to their calcluations Ican only deduct $ 133 out of 1425 I paid as interest.

Am I looking at the right instructions or sud I be doing something else. I thought I could deduct the entire amount from my total income. Please advise

Thanks
Nitin

Nitin:

There IS an income limit that restricts claiming student loan interest.

How much money did you make in 2005?

I made around $ 35,000 in 2005. I think this is within the limit.

I think I can deduct the student loan amout ($1425) but don't know how should I go about calculating that

Thanks
Nitin

Do the worksheet!

Line 1: 1425
(assuming) Line 4: 35,000
Line 5: No
Line 7: 0
Line 8: 1425-0 = 1425!

Enter 1425 on 1040NR EZ line 9.
What's so complicated?

Vaya

Vaya's input is accurate; nothing to add.

Thanks Vaya,

Somehow I ignored the 50K limiton line 5

Thanks again
Nitin

Glad to help!