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Qualified student loan. A qualified

Any nontaxable distribution of

your adjusted gross income from line

student loan is any loan you took out to

qualified tuition program earnings.

10 is more than $159,950 if you

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pay the qualified higher education

Any nontaxable distribution of

checked filing status box 1, or more

expenses for any of the following

Coverdell education savings account

than $119,975 if you checked filing

individuals.

earnings.

status box 2.

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Any scholarship, educational

1. Yourself or your spouse.

Note. Residents of Canada, Mexico,

assistance allowance, or other payment

2. Any person who was your

the Republic of Korea (South Korea),

(but not gifts, inheritances, etc.)

dependent when the loan was taken

and U.S. nationals may be able to claim

excluded from income.

out.

exemptions for their dependents and, if

For more details on these expenses,

married, their spouse. Residents of

3. Any person you could have

see Pub. 970.

India who were students or business

claimed as a dependent for the year the

loan was taken out except that:

apprentices may also be able to take

Eligible student. An eligible

exemptions for their spouse and

a. The person filed a joint return.

student is a person who:

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dependents. However, Form 1040NR

Was enrolled in a degree, certificate,

b. The person had gross income

must be used to claim the additional

or other program (including a program

that was equal to or more than the

exemptions.

of study abroad that was approved for

exemption amount for that year ($3,500

credit by the institution at which the

for 2008), or

Line 16 — Unreported social security

student was enrolled) leading to a

c. You could be claimed as a

and Medicare tax from Forms 4137

recognized educational credential at an

dependent on someone else’s return.

and 8919. Enter the total of any taxes

eligible educational institution, and

from Form 4137 and Form 8919. Check

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Carried at least half the normal

the appropriate box(es).

The person for whom the expenses

full-time workload for the course of

were paid must have been an eligible

Form 4137. If you received tips of

study he or she was pursuing.

student (defined later on this page).

$20 or more in any month and you did

Line 11 — Itemized deductions.

However, a loan is not a qualified

not report the full amount to your

Enter the total state and local income

student loan if (a) any of the proceeds

employer, you must pay the social

taxes you paid or that were withheld

were used for other purposes, or (b) the

security and Medicare or railroad

from your salary in 2008. But use the

loan was from either a related person

retirement (RRTA) tax on the

worksheet on this page to figure the

or a person who borrowed the

unreported tips. You must also pay this

amount to enter on line 11 if your

proceeds under a qualified employer

tax if your Form(s) W-2 shows allocated

adjusted gross income from line 10 is

plan or a contract purchased under

tips that you are including in your

more than $159,950 if you checked

such a plan. To find out who is a

income on Form 1040NR-EZ, line 3.

filing status box 1, or more than

related person, see Pub. 970.

To figure the social security and

$79,975 if you checked filing status box

Qualified higher education

Medicare tax, use Form 4137. If you

2. If, during 2008, you received any

expenses. Qualified higher education

owe RRTA tax, contact your employer.

refunds of, or credits for, income tax

expenses generally include tuition,

Your employer will figure and collect the

paid in earlier years, do not subtract

fees, room and board, and related

RRTA tax.

them from the amount you deduct here.

expenses such as books and supplies.

Instead, see the instructions for line 4

You may be charged a penalty

The expenses must be for education in

on page 5.

equal to 50% of the social

a degree, certificate, or similar program

security and Medicare tax due

Note. Residents of India who were

at an eligible educational institution. An

CAUTION

on tips you received but did not report

students or business apprentices may

eligible educational institution includes

to your employer.

be able to take the standard deduction

most colleges, universities, and certain

instead of their itemized deductions.

vocational schools. You must reduce

Form 8919. If you are an employee

See Pub. 519 for details.

the expenses by the following benefits.

who received wages from an employer

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Employer-provided educational

Line 13 — Exemption deduction.

who did not withhold social security and

assistance benefits that are not

Generally, you can take an exemption

Medicare tax from your wages, use

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

of $3,500 for yourself. But use the

Form 8919 to figure your share of the

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Excludable U.S. series EE and I

worksheet on page 7 to figure the

unreported tax. Include on line 16 the

savings bond interest from Form 8815.

amount, if any, to enter on line 13 if

amount from line 13 of Form 8919.

Itemized Deductions Worksheet—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 2008 . . .

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

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

4. Enter: $159,950 ($79,975 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. Divide line 7 by 1.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9. Subtract line 8 from line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. Total itemized deductions. Subtract line 9 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” . . . . . . . . . . . . . . . . . . . . . . . . . .

10.

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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 - 2008 Page 6

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