Thanks Alan,

-Aseem

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Aseem wrote:

- quote -

The Student Loan Interest Deduction is available to NRAs.
See the instructions for either the 1040NR-EZ or 1040NR as
well as Pub 970 to see if your loan is a qualified loan. It
doesn't matter that you may have used a foreign bank for the
loan.

There is one other factor to consider. The loan proceeds
must have been used to pay for qualified higher educ.
expenses. Like the other tax benefits for higher ed., these
expenses have to be reduced by amounts from tax-free
sources. There is a catch-all phrase that includes any other
non-taxable payment other than a gift or inheritance that is
received for educational assistance. I haven't researched
this issue, but I would think that if you availed yourself
of a tax treaty benefit available for F and J visa students,
then any income you may have received tax-free or earned
income you have excluded from tax would have to be deducted
from the qualified education expense.

--
Alan
http://taxtopics.net

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Thanks for the info. I read Publication 970 and it's
chapter 3 (about the relevent credit) states that as
a non-resident I am not eligible.

Perhaps I can claim the Student Loan interest deducation,
because there is no restrication for non-residents. What
I am unsure about is that I had taken the loan from a bank
outside the US. But I could not find any clause in pub. 970
or pub 519 that restricts such a case. Do you think I am
eligible for this deduction?

Thanks again
-Aseem

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Aseem wrote:

- quote -

True. You can make the election to treat part of 2004 as a
resident alien. However, you can't make the election until you
pass the substantial presence test in 2005. You would have to
file for an extension for 2004 in order to do this.

- quote -

No. You did not incur any qualified higher education expense
as a resident alien.

--
Alan
http://taxtopics.net

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I was wondering if I can get an education credit if I opt
for dual-status for the year 2004. I was an exempt
individual for the first 9 months (F1 visa from Aug/03 -
Sep/04), and a non-exempt individual (on H1 visa) after that
for the rest of the year. I don't meet either the Green Card
or the Substantial Presence test for the year 2004. However,
for the year 2005, I'll be a resident for tax purposes since
I'll be staying here for the rest of the year (and I'll meet
the test by May end). So I can claim 2004 as a year of dual
status.

Now, in 01/04 I spent money on education (school fee).
However, this expense was incurred while I was an exempt
individual. Can I take the appropriate Lifetime Learning tax
credit for it? (Provided I meet other requirements of the
tax credit)

Thanks
-Aseem

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