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September 20, 2020
Question

I live in norway and pay property, income, interest, div taxes. I also pay tax at 22% on my us assets, income, etc. where do i file these tax credits?

  • September 20, 2020
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i also file a us tax return, paying tax on my income and us assets.  am i being subject to double taxation?

1 reply

Employee
September 20, 2020

Property taxes and mortgage interest are both schedule A itemized deductions even if you pay them in a foreign country. Just list the total amount of property taxes you pay. For the mortgage interest, you will need to check a box that says “I did not receive a 1098 for this mortgage.”


You can also claim a tax credit or deduction for foreign taxes that you pay on the same income that you are paying US tax on.  Just run the TurboTax program in order, don’t skip any screens, and answer all the questions correctly, and the credit will come up in your case.

 

If you live outside of the US for at least 330 days of the tax year, you may also qualify for a foreign earned income exclusion. This means that your income earned from working while living in a foreign country full time is not subject to US taxation.  Unearned income, which includes passive rental income, dividends and interest, prizes and awards and so on, is still subject to US tax. The foreign earned income exclusion should also come up automatically if you simply follow the program and don’t skip around.