The Ultimate Tax Tips for American Expats in Norway: Don’t Miss Out on Hidden Savings!

Imagining a serene life in Norway? It might be tempting to think that moving to this picturesque country will exempt you from U.S. tax obligations. But the reality is, even while living abroad, you still have to meet your tax responsibilities back home.

Lowering Your US Taxable Income While Living in Norway

1. Foreign Earned Income Exclusion (FEIE): When living in Norway, you can reduce your taxable income by claiming the FEIE. This exclusion, which allows you to exclude a significant portion of your foreign income from taxes, can be a game-changer. To determine your exclusion amount, including the foreign housing exclusion, using IRS Form 2555, consult our tax accountants.
2. Foreign Tax Credit (FTC): The FTC is another option to prevent double taxation of your income. Our tax experts can guide you through the process of determining if you qualify for this credit and help you with any additional filings required by the IRS.

Remember, even while residing in Norway, you might need to report foreign financial assets and bank accounts. Let our tax accountants unravel the complexities of these reporting requirements and assist you in meeting all necessary obligations.

Addressing Double Taxation as an Expat in Norway

1. Foreign Tax Credit: To avoid double taxation while in Norway, consider utilizing the foreign tax credit. By filing the required paperwork with the IRS in a timely manner, you can credit foreign taxes paid to Norway against your U.S. tax liability.
2. Form 1116: Completing this form and attaching it to your tax return can help you document the taxes paid to Norway and claim the appropriate credit. This ensures that you are not taxed twice on the same income.

Filing Implications of Accruing Foreign Financial Assets in Norway

1. FATCA Compliance: The Foreign Account Tax Compliance Act mandates reporting for individuals with significant foreign financial holdings. If you accumulate financial assets in Norway that meet the reporting thresholds, you must file Form 8938. Failure to comply may result in penalties.
2. FBAR Compliance: In addition to IRS reporting, expats living in Norway may need to file an FBAR with the Financial Crimes Enforcement Network. This reporting requirement applies to individuals with foreign bank accounts exceeding $10,000. Failure to meet this obligation could lead to costly penalties.

In conclusion, living abroad in Norway doesn’t exempt you from your U.S. tax obligations. To navigate the complexities of U.S. taxes while in Norway, contact our tax CPAs for expats at (541) 362-9127. Let US Tax Help guide you through the tax season with expertise and efficiency.