My brother (18 year old), is on F1 student status. I am a resident and pay for 100% of his tuition and other education and living costs. He lives with me when not in school. Talking to a few tax professionals, I can claim him as a dependent for tax purposes.

He does not have a social security number or an ITIN.
However, his 1098T form does have a value for the ssn field. Can this be used while filing taxes?

" I can claim him as a dependent for tax purposes. "----> Sorry, no you can't;your brother must be a citizen or resident alien of the United States, Canada, or Mexico.as a F1 visa holder, your brother is EXEMPT from FICA Taxes for the first five years, but he is still subject to federal and state income taxes. Regardless of his income( even if his incoem is $0), he MUST file IRS Form 8843. Eve if he were in the U.S. even 1 day in 2010, heMUST file Form 8843.Also if he has simple bank interest and interest on CD's or etc. are not considered earned income for non-resident alien, and therefore are not reportable. His bank generally reports this interest on Form 1099 and he should retain this form for his records, but not mail it with yohistax filing.In gneral, if the total sum of his U.S. source income was less than the personal exemption ($3,650 for 2010) he is not required to file IRS Form 1040NR-EZ or Form 1040NR. However, if he had any taxes withheld, he should file IRS Form 1040NR-EZ or Form 1040NR to get a refund of these taxes and he MUST still file Form 8843.Due to a tax treaty provision, ONLY students from India may claim the standard deduction($5,700 for 2010) on the non-resident forms.
"He does not have a social security number or an ITIN."---> He can apply for an ITIN by filign Form W7. He needs to attach a valid federal income tax return, unless he qualifies for an exception, and include his original, notarized, or certified proof of identity and foreign status documents.If he wants to be on either OPT/CPT , then he can get SSN; I mean Social Security Number is ONLY available to F-1 student who has an offer of employment on campus or specific work authorization granted by the U.S Citizenship and Immigration Services.


"However, his 1098T form does have a value for the ssn field. Can this be used while filing taxes?"--->To claim the Qualified Student Loan Interest Deduction, he needs to be single; the interest paid by the student, on the Qualified Student Loan, can be deducted on Line 9 ( Interest Deduction on Qualified Student Loans ) of Form 1040NR-EZ.For his federal return, he can apply for his ( or his spouse's, if he married) ITIN file simultaneously by attaching the tax return to the W-7, expecting the IRS officials to fill-in the ITIN and file the return.However, for state returns, he needs to file an extension (make a payment if taxes are owed) and simply wait for the ITIN to be issued before filing. The state tax officials will not coordinate with the IRS and get the ITIN when it is issued.
Please visit the IRS website for further info on ITIN; Individual Taxpayer Identification Number (ITIN)

I have been paying student loan interest while I have been on OPT to a bank based in India. To claim this exemption, do I need to present the amount of interest paid in 2010. If so, what supporting paperwork would I need to prove the amount of interest paid in the year 2010 to the bank on the education Loan. Would the bank would have to give me an account saying x = principle and y = interest right? Banks in the USA give a 1098-E, is there anything equivalent to that for India?

Now, I have already filed my taxes on 1040nr-ez form for 2010. How do I go ahead filing for an amend? Is the exemption only on the interest paid?

“I have been paying student loan interest while I have been on OPT to a bank based in India. To claim this exemption, do I need to present the amount of interest paid in 2010.”--->Sorry. I guess you can’t deduct your student loan interest paid to the Indian bank in India on your US federal or state return.( You May take the interest on your Indian return; however, I am not sure.) As long as you take a qualified student loan taken to pay a full time school education for yourself, your spouse or your dependent for tuition fees, room and board, and related expenses like books and supplies in US, then you can take the deduction for the interest paid on a qualified Student Loan in Line 32 of Form 1040NR.
“ If so, what supporting paperwork would I need to prove the amount of interest paid in the year 2010 to the bank on the education Loan. Would the bank would have to give me an account saying x = principle and y = interest right?”---> Not sure.
“ Banks in the USA give a 1098-E, is there anything equivalent to that for India?”--->In US, a financial institution,a bank, I mean, governmental unit or any of its subsidiary agencies, educational institution, or any other person receiving student loan interest of $600 or more from an individual during the year in the course of their trade or business, then they need to file Form 1098-E, Student Loan Interest Statement, if you, as a bank for instance, receive student loan interest of $600 or more from an individual during the year in the course of your trade or business, then you MUST file the FORM. I don’t know what form(s) banks in INDIA use. I guess you can contact your bank in INDIA.

So, this means that I can only claim the student loan deduction if this was through a bank in the US and if I had a 1098-E. Do you think it is not wise to make this claim for the interest I have paid to the bank in India even though I used it for a Federally recognized university?

" So, this means that I can only claim the student loan deduction if this was through a bank in the US and if I had a 1098-E."--> Yes
" Do you think it is not wise to make this claim for the interest I have paid to the bank in India even though I used it for a Federally recognized university?"--> I don't think so as said previously.

" So, this means that I can only claim the student loan deduction if this was through a bank in the US and if I had a 1098-E."--> Sorry. What you meant was that you borrowed the funds for your higher education expenses from an INDIAN bank in US, right?? Then you can deduct your student loan interest expenses on your federal return. Any loan taken out to pay higher education expenses qualifies, as long as it was not obtained from a relative. So, you are right. You can deduct your student loa n interest on your federal return. The deduction for student loan interest will continue to be available to every person who is legally obligated to repay a student loan through the year 2012; you can claim it even though you borrowed the funds from an INDIAN bank in US.

Thanks. That clarifies my doubt. So, i ll now have to file an amend to make this correction.