Tax: Student Loan Interest Deductions

Mani.VV · #1 (**permalink**) 02-09-2014, 01:58 AM

Hi, I came to the US in 2011 to pursue my Masters. I had taken a student loan in India at that time for paying the tuition fee. I am currently paying interest on that loan. Is this loan taken to pay tuition fee at a US educational institution eligible for the student loan interest deduction ?

The IRS website is not very clear about the source of the loan. It just says if loan is taken towards paying for education, then the interest paid can be deducted for upto $2500.

If yes, I do not get a 1098-E or anything of that sort. what would I need to do ?

Any help in this matter is appreciated. Thank you for your time.

Wnhough · #2 (**permalink**) 02-09-2014, 06:15 AM

Quote:

Originally Posted by Mani.VV

#1;Hi, I came to the US in 2011 to pursue my Masters. I had taken a student loan in India at that time for paying the tuition fee. I am currently paying interest on that loan. Is this loan taken to pay tuition fee at a US educational institution eligible for the student loan interest deduction ?

#2;The IRS website is not very clear about the source of the loan. It just says if loan is taken towards paying for education, then the interest paid can be deducted for upto $2500.

#3;If yes, I do not get a 1098-E or anything of that sort. what would I need to do ?

Any help in this matter is appreciated. Thank you for your time.

#1;I guess it depends; Only loans for attendance at institutions which are eligible for US Federal financial aid are eligible.

#2;as mentioned above; you need to contact the irs for sure.

#3;you need a copy of foreign Indian bank statement/loan pmt receipts/ cancelled check or etc

Mani.VV · #3 (**permalink**) 02-09-2014, 11:51 AM

Quote:

Originally Posted by Wnhough

#1;I guess it depends; Only loans for attendance at institutions which are eligible for US Federal financial aid are eligible.

#2;as mentioned above; you need to contact the irs for sure.

#3;you need a copy of foreign Indian bank statement/loan pmt receipts/ cancelled check or etc

Yes, the institution eligibility is satisfied.

Thank you. I will contact the IRS and see what they say about this.