Instructions For Form 1040nr-Ez - 2010 (Page 6 of 24) in pdf

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income is from sources outside the

student (defined on this page).

Carried at least half the normal

United States. If you are a resident of a

However, a loan is not a qualified

full-time workload for the course of

treaty country, you must know the

student loan if (a) any of the proceeds

study he or she was pursuing.

terms of the tax treaty between the

were used for other purposes, or (b) the

Line 11 — Itemized deductions.

United States and the treaty country to

loan was from either a related person

Enter the total state and local income

claim treaty benefits on Form

or a person who borrowed the

taxes you paid or that were withheld

1040NR-EZ. For details, see the

proceeds under a qualified employer

from your salary in 2010. If, during

instructions for item J on page 10.

plan or a contract purchased under

2010, you received any refunds of, or

such a plan. To find out who is a

credits for, income tax paid in earlier

When completing Form 1040NR-EZ:

related person, see Pub. 970.

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years, do not subtract them from the

Enter $0 on line 5. The $9,000

amount you deduct here. Instead, see

reported to you in box 2 of Form

Qualified higher education

the instructions for line 4 on page 5.

1042-S is reported on line 6 (not line 5).

expenses. Qualified higher education

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Enter $9,000 on line 6.

Note. Residents of India who were

expenses generally include tuition,

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Enter $0 on line 8. Because none of

students or business apprentices may

fees, room and board, and related

the $9,000 reported to you in box 2 of

be able to take the standard deduction

expenses such as books and supplies.

Form 1042-S is included in your

instead of their itemized deductions.

The expenses must be for education in

income, you cannot exclude it on line 8.

See Pub. 519 for details.

a degree, certificate, or similar program

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Include on line 18b any withholding

Line 13 — Exemption deduction.

at an eligible educational institution. An

shown in box 9 of Form 1042-S.

Generally, you can take an exemption

eligible educational institution includes

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Provide all the required information in

of $3,650 for yourself.

most colleges, universities, and certain

item J of Schedule OI on page 2 of

Note. Residents of Canada, Mexico,

vocational schools. You must reduce

Form 1040NR-EZ.

the expenses by the following benefits.

or South Korea, and U.S. nationals may

Line 6 – Treaty exempt income.

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be able to claim exemptions for their

Employer-provided educational

Report on line 6 the total of all your

dependents and, if married, their

assistance benefits that are not

income that is exempt from tax by an

spouse. Residents of India who were

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

income tax treaty, including both

students or business apprentices may

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Excludable U.S. series EE and I

effectively connected and not effectively

also be able to take exemptions for

savings bond interest from Form 8815.

connected income. Do not include this

their spouse and dependents. However,

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Any nontaxable distribution of

exempt income on line 7. You must

you must use Form 1040-NR if you

qualified tuition program earnings.

complete item J of Schedule OI on

want to claim the additional

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Any nontaxable distribution of

page 2 of Form 1040NR-EZ to report

exemptions.

Coverdell education savings account

income that is exempt from U.S. tax.

Line 15 — Tax. Use the Tax Table on

earnings.

Line 8 — Scholarship and fellowship

pages 16 through 24 to figure your tax.

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Any scholarship, educational

grants excluded. If you received a

Be sure you use the correct column.

assistance allowance, or other payment

scholarship or fellowship grant and

Line 16 — Unreported social security

(but not gifts, inheritances, etc.)

were a degree candidate, enter

and Medicare tax from Forms 4137

excluded from income.

amounts used for tuition and

and 8919. Enter the total of any taxes

course-related expenses (fees, books,

from Form 4137 and Form 8919. Check

For more details on these expenses,

supplies, and equipment), but only to

the appropriate box(es).

see Pub. 970.

the extent the amounts are included on

Form 4137. If you received tips of

line 5. See the examples in the

Eligible student. An eligible

$20 or more in any month and you did

instructions for line 5 on page 5.

student is a person who:

not report the full amount to your

Line 9 — Student loan interest

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Was enrolled in a degree, certificate,

employer, you must pay the social

deduction. You can take this

or other program (including a program

security and Medicare or railroad

deduction if all of the following apply.

of study abroad that was approved for

retirement (RRTA) tax on the

1. You paid interest in 2010 on a

credit by the institution at which the

unreported tips. You also must pay this

qualified student loan (see below).

student was enrolled) leading to a

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

2. Your filing status is single.

recognized educational credential at an

tips that you are including in your

3. Your modified AGI is less than

eligible educational institution, and

income on Form 1040NR-EZ, line 3.

$75,000. Use lines 2 through 4 of the

worksheet on this page to figure your

modified AGI.

Student Loan Interest Deduction

Use the worksheet on this page to

Worksheet — Line 9

figure your student loan interest

Keep for Your Records

deduction.

Qualified student loan. This is any

See the instructions for line 9 on this page before you begin.

loan you took out to pay the qualified

1. Enter the total interest you paid in 2010 on qualified student

higher education expenses for any of

loans (defined on this page). Do not enter more than $2,500 . . 1.

the following individuals.

2. Enter the amount from Form 1040NR-EZ, line 7 2.

1. Yourself or your spouse.

2. Any person who was your

3. Enter the amount from Form 1040NR-EZ, line 8 3.

dependent when the loan was taken

4. Subtract line 3 from line 2 . . . . . . . . . . . . . . . . 4.

out.

5. Is line 4 more than $60,000?

3. Any person you could have

No.

Skip lines 5 and 6, enter -0- on line 7,

claimed as a dependent for the year the

loan was taken out except that:

and go to line 8.

a. The person filed a joint return.

Yes. Subtract $60,000 from line 4 . . . . . . . . 5.

b. The person had gross income

6. Divide line 5 by $15,000. Enter the result as a decimal (rounded

that was equal to or more than the

to at least three places). If the result is 1.000 or more, enter

exemption amount for that year ($3,650

1.000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

for 2010), or

c. You could be claimed as a

7. Multiply line 1 by line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

dependent on someone else’s return.

8. Student loan interest deduction. Subtract line 7 from line 1.

Enter the result here and on Form 1040NR-EZ, line 9 . . . . . . . . 8.

The person for whom the expenses

were paid must have been an eligible

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Instructions for Form 1040NR-EZ (2010)

Instructions For Form 1040nr-Ez - 2010 Page 6

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