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AMERICANS IN NORWAY

Americans in Norway: Tell us how US citizenship-based taxation impacts you?

The United States operates citizenship-based taxation, which can have serious consequences for Americans living abroad. Tell us how you are affected and what advice you have for fellow Americans in Norway.

Published: 23 January 2024 11:46 CET
Updated: 26 January 2024 13:23 CET
Americans in Norway: Tell us how US citizenship-based taxation impacts you?
The Internal Revenue Service (IRS) headquarters in Washington, DC. (Photo by Mandel Ngan/ AFP)

You might have lived outside the US for years, even decades, but that doesn’t mean that you escape the clutches of the IRS.

Citizenship-based taxation, coupled with the US’ FATCA legislation, can have a serious impact on Americans in Norway, affecting everything from completing tax declarations, the type of investments you can make and even whether you can open a bank account.

As Norway, also almost uniquely, taxes global wealth, becoming a resident in Norway can bring unpleasant surprises. 

The Local would like to hear from American readers in Italy about their experiences with citizenship-based taxation and FATCA and what – if any – problems it creates for you. Plus we’d like to get your advice for other Americans.

Please take a moment to fill out the survey below. (If the pop-up doesn’t work, press here). 

 

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TAXES

Taxes: Everything you need to know about Norway’s commuter deductions

Norway has a tax deduction that those who commute to work can claim. However, it must be added manually to tax returns, meaning many miss out. 

Published: 26 April 2024 12:46 CEST
Taxes: Everything you need to know about Norway's commuter deductions

There are plenty of advantages to commuting to and from work, whether it be cheaper rent or property prices, being closer to nature, or being able to live closer to your children’s school. 

The obvious downside, apart from making the journey, is the cost. Thankfully, commuters in Norway can claim some of this cost back as a tax deduction. 

Furthermore, you can change tax returns up to three years after they have been submitted. If you have missed out on a deduction, you can log into the Norwegian Tax Administration portal and update the information. 

READ ALSO: Five things to do when you get your Norwegian tax return

Norway’s commuter deductions cover several categories. Firstly, those who spend nights away from home can claim additional expenses such as food and accommodation, you can also make deductions for travel between work and home. 

The Norwegian Tax Administration has a wizard on its website which tells workers whether they are classified as commuters and, therefore, eligible for deductions on its website. 

As a technical point, you can be ineligible for a commuter deduction, but you can also deduct daily travel to and from work. 

Those who travel round trips of more than 37 kilometres between work and home are eligible for the travel deduction. This deduction is calculated based on several factors, such as the length of the journey, whether toll roads and ferries significantly reduce the journey time, and the number of days of the year you work. 

The traveller’s deduction can be claimed for up to 230 days of the year. The low threshold for roundtrips means that journeys between Oslo and nearby towns such as Ski or Lillestrøm become tax deductible.

For example, if you commute 45 kilometres per day for 230 days of the year, you could deduct as much as 702 kroner from your taxes. 

Those who commute up to 100 kilometres per day and don’t use toll roads or ferries to shorten their journeys could deduct around 5,000 kroner from their taxes. 

This is based on the rules for 2023 and commutes from Oslo to nearby towns and cities. The Norwegian Tax Administration has a calculator on its website that can tell you how much you can deduct for your daily travel. 

If you want to try and add deductions for previous years, be aware that the thresholds for journey length were previously higher. The minimum distance for previous years was a daily round trip of 67 kilometres. 

Under these rules, travel between Oslo and some surrounding towns may not be deductible. Still, you can log in and check whether you can add deductions for previous years. 

How to add these to your tax return

When checking your tax return, you can choose to add information.

There is a section marked “Would you like to provide any other information?”. From there, if you go to the bottom of the list, there should be an option for “work and travel” (when using the English version of the portal). 

From there, you can input your information, making the process relatively straightforward. 

Below you can see some pictures on where to add any travel deductions. 

Pictured is a form from the Norwegian Tax Administration.

You can add the deductions under work/ travel. Photo: Screenshot / The Local.
 
Pictured is the commuter deduction form.

Those who travel for work, or to get to work have a number of potential deductions. Photo: Screenshot / The Local
 
The travel deduction form.

Here you can see where you input your daily travel information. Photo: The Screenshot / The Local.
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