Can I claim student loan interest on my New York return if I am a non-resident? The Nonresident deductions screen allows for entry of Moving Exp. & Student Loan Interest.

[meg-robinson90]

Can I take the Student Loan Interest deduction if I am filing as a nonresident for my New York tax return,  

I live in New Jersey but work in New York City.  In Turbo Tax, on the New York State return, the screen for Nonresident Deductions allows for the entry of Moving Expenses & Student Loan Interest.  In the New York Source Portion column, do I enter any or all of my student loan interest?  I earned approximately 90% of my income in New York.  DO I enter all the student loan interest paid in 2017, or do I apportion it (either by income earned by state or days working in the state)?  Or is it not allowable since I am filing as a nonresident?

[DS30 · Accepted solution]

No, you will not be able to claim your student loan interest or moving expenses on your nonresident NY state income tax return unless you are actually attending school in NY as a nonresident or the money was drawn from one of  New York’s 529 College Savings programs for qualified higher education expenses.

Moving expenses will only be allowed on a NY nonresident state income tax return if the moving expenses directly relate to your NY sourced income.

Please click this link for more information on NY - Education tax deductions and credits.

[meg-robinson90]

I moved to take a job in New York City, so the moving expenses are directly related to my New York Income.  I only chose to live on the New Jersey side of the Hudson because the rent costs were much lower...

[stanleymcho]

Hi,

I am in a similar situation as OP. I live in NJ, but work in NY. I am paying my student loans. Does it matter that one of the loans I am paying is a Perkins loan that I received directly from a NY school (NYU)? In such a case, am I able to claim the student loan interest from that specific Perkins loan on my nonresident NY state income tax return?

Thanks

[Cynthiad66]

No, you will not be able to claim your student loan interest on your nonresident NY state income tax return unless you are actually attending school in NY as a nonresident or the money was drawn from one of New York's 529 College Savings programs for qualified higher education expenses.

@stanleymcho