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    nitinbedi's Avatar
    nitinbedi Posts: 9, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2006, 07:00 PM
    Student loan deduction
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 10, 2006, 09:48 AM
    Nitin:

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

    How much money did you make in 2005?
    nitinbedi's Avatar
    nitinbedi Posts: 9, Reputation: 1
    New Member
    		  
    #3

    Apr 10, 2006, 05:14 PM
    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
    vaya's Avatar
    vaya Posts: 55, Reputation: 1
    Junior Member
    		  
    #4

    Apr 11, 2006, 05:57 PM
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Apr 12, 2006, 08:23 AM
    Vaya's input is accurate; nothing to add.
    nitinbedi's Avatar
    nitinbedi Posts: 9, Reputation: 1
    New Member
    		  
    #6

    Apr 12, 2006, 07:28 PM
    Thanks Vaya,

    Somehow I ignored the 50K limiton line 5

    Thanks again
    Nitin
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #7

    Apr 14, 2006, 05:14 PM
    Glad to help!
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