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Provide all the required information in

except that you could be claimed as a

Carried at least half the normal

item J on page 2.

dependent on someone else’s return.

full-time workload for the course of

study he or she was pursuing.

Line 6. Use line 6 to report your total

The person for whom the expenses

Line 11 — Itemized deductions. Enter

effectively connected income that is

were paid must have been an eligible

exempt from tax by a tax treaty. Do not

the total state and local income taxes

student (defined later on this page).

include this exempt income on line 7.

you paid or that were withheld from

However, a loan is not a qualified

your salary in 2005. But use the

Also, you must complete item J on

student loan if (a) any of the proceeds

page 2 of Form 1040NR-EZ.

worksheet on this page to figure the

were used for other purposes, or (b) the

amount to enter on line 11 if your

loan was from either a related person

Line 8 — Scholarship and fellowship

adjusted gross income from line 10 is

or a person who borrowed the

grants excluded. If you received a

more than $145,950 if you checked

proceeds under a qualified employer

scholarship or fellowship grant and

filing status box 1, or more than

plan or a contract purchased under

were a degree candidate, enter

$72,975 if you checked filing status box

such a plan. To find out who is a

amounts used for tuition and

2. If, during 2005, you received any

related person, see Pub. 970.

course-related expenses (fees, books,

refunds of, or credits for, income tax

supplies, and equipment), but only to

Qualified higher education expenses

paid in earlier years, do not subtract

the extent the amounts are included on

generally include tuition, fees, room and

them from the amount you deduct here.

line 5. See the examples in the

board, and related expenses such as

Instead, see the instructions for Form

instructions for line 5 starting on page

books and supplies. The expenses

1040NR-EZ, line 4, on page 5.

must be for education in a degree,

certificate, or similar program at an

Note. Residents of India who were

Line 9 — Student loan interest

eligible educational institution. An

students or business apprentices may

deduction. You may take this

eligible educational institution includes

be able to take the standard deduction

deduction only if all of the following

most colleges, universities, and certain

instead of their itemized deductions.

apply.

vocational schools. You must reduce

See Pub. 519 for details.

1. You paid interest in 2005 on a

the expenses by the following benefits.

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Line 13 — Exemption deduction.

qualified student loan (see below).

Employer-provided educational

Generally, you can take an exemption

2. Your filing status is single.

assistance benefits that are not

3. Your modified adjusted gross

of $3,200 for yourself. But use the

included in Form(s) W-2, box 1.

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worksheet on page 7 to figure the

income (AGI) is less than $65,000. Use

Excludable U.S. series EE and I

amount, if any, to enter on line 13 if

lines 2 through 4 of the worksheet on

savings bond interest from Form 8815.

page 5 to figure your modified AGI.

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your adjusted gross income from line

Nontaxable qualified tuition program

10 is more than $145,950 if you

earnings.

Use the worksheet on page 5 to

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checked filing status box 1, or more

Nontaxable earnings from Coverdell

figure your student loan interest

than $109,475 if you checked filing

education savings accounts.

deduction.

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status box 2.

Any scholarship, educational

Qualified student loan. This is any

Note. Residents of Canada, Mexico,

assistance allowance, or other payment

loan you took out to pay the qualified

the Republic of Korea (South Korea),

(but not gifts, inheritances, etc.)

higher education expenses for:

and Japan (and you elect to have the

excluded from income.

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Yourself and your spouse.

old U.S.-Japan income tax treaty apply

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For more details on these expenses,

Any person who was your dependent

in its entirety for 2005), and U.S.

see Pub. 970.

when the loan was taken out.

nationals may be able to claim

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Any person you could have claimed

An eligible student is a person who:

exemptions for their dependents and, if

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as a dependent on your return when

Was enrolled in a degree, certificate,

married, their spouse. Residents of

the loan was taken out if that person

or other program (including a program

India who were students or business

had no gross income or had not filed a

of study abroad that was approved for

apprentices may also be able to take

joint return.

credit by the institution at which the

exemptions for their spouse and

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Any person you could have claimed

student was enrolled) leading to a

dependents. However, Form 1040NR

as a dependent on your return for the

recognized educational credential at an

must be used to claim the additional

prior year when the loan was taken out

eligible educational institution, and

exemptions.

Itemized Deductions Worksheet—Form 1040NR-EZ, Line 11

(keep for your records)

1. Enter the amount of state and local income taxes you paid or that were withheld from your salary in 2005 . . .

2. Multiply line 1 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3. Enter the amount from Form 1040NR-EZ, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. Enter: $145,950 ($72,975 if you checked filing status box 2) . . . . . . . . . . . . . . . . . . .

5. Is the amount on line 4 less than the amount on line 3? . . . . . . . . . . . . . . . . . . . . . .

No.

Stop. Your deduction is not limited. Enter the amount from line 1 above on

Form 1040NR-EZ, line 11.

Yes. Subtract line 4 from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. Multiply line 5 by 3% (.03) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7. Enter the smaller of line 2 or line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8. Total itemized deductions. Subtract line 7 from line 1. Enter the result here and on Form 1040NR-EZ, line 11.

Then, on the dotted line to the left of the line 12 entry space, enter “IDW” . . . . . . . . . . . . . . . . . . . . . . . . . .

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Instructions for Form 1040NR-EZ

Instructions For Form 1040nr-Ez - U.s. Income Tax Return For Certain Nonresident Aliens With No Dependents - 2005 Page 6

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