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    sameersk's Avatar
    sameersk Posts: 5, Reputation: 1
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    #1

    Jan 19, 2012, 10:31 PM
    Education loan interest paid in India
    I took education loan in India for my MS degree. I graduated in 2010 and I got got job in April 2011. I started paying interest on that loan (To my bank in India) after getting job.
    1.Can this amount be deductible from my 2011 tax ?
    2.Do I need to fill any separate form for this ?

    Thanks for help in advance.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Jan 20, 2012, 03:57 AM
    1. No
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #3

    Jan 20, 2012, 06:41 AM
    MukatA:

    I have to disagree. I just reviewed the criteria for student loan interest, and nowhere did it dis-allow interest paid to a foreign bank.

    The only dis-allowance was for interest paid to a "related party". I sincerely doubt that Sameersk is related to his bank in any way.

    Sameersk:

    This IS one restriction. The loan MUST be exclusively to pay for tuition and fees ONLY. If you used part of the loan to pay other expenses, like travel costs and living expenses, then, unfortunately, the interest is NOT deductible.
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
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    #4

    Jan 20, 2012, 11:09 AM
    If you are a resident of the U.S. see Form 1042 and 1042S.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #5

    Jan 20, 2012, 09:12 PM
    Yes, payment for student loan to foreign bank is deductible if the loan terms meet certain conditions set by IRS. I have not come across even a single example where such loan from Indian bank met the required conditions. And then it must also meet withholding requirements. Your U.S. Tax Return: Student Loan Interest Deduction
    sameersk's Avatar
    sameersk Posts: 5, Reputation: 1
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    #6

    Jan 21, 2012, 02:34 PM
    Thank you all for your replies.
    AtlantaTaxExpert : I have used the loan only for my tuition and fees only. Which form particularly do I need to submit for this ?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Jan 21, 2012, 07:44 PM
    There IS no particlar form. You claim it on Line #9 of Form 1040NR-EZ or Line #33 for Form 1040NR.

    Note that you cannot claim MORE than $2,500 in interest.
    sameersk's Avatar
    sameersk Posts: 5, Reputation: 1
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    #8

    Jan 22, 2012, 12:52 PM
    To AtlantaTaxExpert : Hi AtlantaTaxExpert, I am looking for tax consultant for tax filing. How I can contact you?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #9

    Jan 22, 2012, 01:26 PM
    Doubleclick on my title above, then scroll down to my signature block, where my email address can be found.
    sameersk's Avatar
    sameersk Posts: 5, Reputation: 1
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    #10

    Jan 23, 2012, 07:28 PM
    To AtlantaTaxExpert : I have sent you an email. Please let me know if you received it or not.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #11

    Jan 23, 2012, 07:57 PM
    No, not yet.

    Which email address did you use?
    sameersk's Avatar
    sameersk Posts: 5, Reputation: 1
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    #12

    Jan 24, 2012, 01:04 AM
    To AtlantaTaxExpert : I have sent it on [email protected]. My be this is wrong then. I found it on support AtlantaTaxExpert link. I was not able to find any email address when I clicked on your title. I could only see Biography, Experience and Occupation there. Please help me finding your contact or let me know where else I can find it.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #13

    Jan 24, 2012, 08:10 AM
    Please send the email again to that email address; I will be looking for it.
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