Hi,
I am student in TX, I am summarizing my earning (I have added my payment and deduction for Nov and Dec as well) and deductions below,

YTD Gross Taxes
10302.5 934.84 Pay from Assistantship
14875 1920.72 Pay from Internship
25177.5 2855.56 Total


Also I have taken a student loan that I am repaying. In 2008 till date I have re paid $2062 and the balance on the loan is $1860.


How much is the tax refund that I can get? I have read that I can use the loan repayment to be deducted from the taxable income is this true? What can be done so that I get a full refund of the taxes? Please help :eek:

Thank you all in advance!!

On F1 you are exempt from residency for 5-years. You must file non-resident tax return. You do not pay FICA taxes.

You will get personal exemption of $3500 and standard deduction of $5,450 (as per tax treaty between India and the U.S.).

You federal income tax on $25177 is $2033 without student loan interest deduction.

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Originally Posted by MukatA

On F1 you are exempt from residency for 5-years. You must file non-resident tax return. You do not pay FICA taxes.

You will get personal exemption of $3500 and standard deduction of $5,450 (as per tax treaty between India and the U.S.).

You federal income tax on $25177 is $2033 without student loan interest deduction.

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So does it mean that I will get a refund of $822? What will be my tax with student loan deductions? Can in any way can I get a complete refund?

You did not mention how much student loan interest you paid in 2008. If you paid $200, you will save $20 of federal income tax.

Quote:

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Originally Posted by MukatA

You did not mention how much student loan interest you paid in 2008. If you paid $200, you will save $20 of federal income tax.

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Hello Mukta,
I have made repayment of $2062 from which $169.21 was the interest that I paid. So does it mean that I will get a refund of $822 + $169.21? Can in any way can I get a complete refund? Thank you for your quick responses.

No, the interest is a deduction, NOT a credit.

Your refund will be $822 plus $17 for $839.