Can I claim Repayment of Education Loan in India for Tax Benefit in USA?
My wife and I both are working in USA. I did my Masters here. I recently (in 2009) repaid my education loan back home in India. Can I claim that as a Tax Benefit while filing for Taxes in USA for 2009?
Please answer as it seems like I will be ending up paying more this time (approx 4000$) instead of getting a rebate and I am trying to minimize that amount.
The only tax benefit for paying a student loan is a deduction for the interest.
IRS publication 970 indicates that in order for the interest to be deductible, the tuition it paid for must have been at a school covered by the US Department of Education Federal Student Aid Program. Only a few schools outside the US would qualify.
