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February 15, 2023
Question

The TT MA return has a glitch. For Education Expenses, non-Residents, Massachusetts allows NR to deduct interest on student loans but TT does not allow you to enter it?

  • February 15, 2023
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1 reply

February 15, 2023

It's possible that you might not be eligible to deduct student loan interest is limited because of a special computation that applies when you're a nonresident.  Nonresidents are only taxed on income from Massachusetts sources, so any deductions they're allowed are limited by the amount of this income. 

It's also possible that you have no taxable income that a deduction would offset.

Nonresidents are allowed to claim a student loan interest deduction or undergraduate student loan deduction, but only to the extent allowed by using Line 14 of Form 1-NR/PY: MA Nonresident or Part-Year Resident Income Tax Return

All nonresident taxpayers have to complete lines 14a to 14g to arrive at a Nonresident Deduction and Exemption Ratio. The ratio is used to determine what amounts, if any, a nonresident can claim for these deductions.

See Nonresident Deduction and Exemption Ratio in the Instructions for Form 1-NR/PY, available at the link above.

If neither of these appear to be the case, please respond back.