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I have a friend who moved from Norway to the US with his family to take a job (he's a physician). For 2002 he lived and worked in the US for less than 4 months. He was taxed and paid the taxes in Norway for the income he earned there, but is now going to be permanently based in the US.

Can someone direct me to the correct publications that apply?

He earned about $32,000 in Norway, and $4000 in the US. I have been looking at form 2555, Foreign Earned Income, but I'm not sure if this is the right situation, since it seems it is designed more for people that are based in the US for the whole tax year but also have some foreign income. However, the instructions say the "maximum earned income exclusion for 2002" is $80,000. Would that imply that anything earned below that is not US taxable?


I'm not an expert on international taxation rules, but I do know that Form 2555 does not apply here. The Foreign Earned Income Exclusion is for US residents who work abroad and meet certain requirements.

The subject of taxes when more than one country is involved is complex as you have to look at the tax treaties (if they exist). Each pair of countries has different rules.

The best place to start looking for information is IRS Pub. 519, US Tax Guide for Aliens. You can find it here: www.irs.gov/pub/irs-pdf/p519.pdf

Ira
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