The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Oslo_gal on November 15, 2015, 06:53:02 AM
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Hey,
I am hoping for some good advice from the forum on how I should make my transition to the US as mustachian as possible. My husband is an American citizen and I recently got my green card. I'll be moving over to Texas some time after Christmas, and find the whole situation a bit overwhelming! I'm afraid of making uneducated money decisions just because the US system is completely new to me, and I have a lot on my plate with just wrapping up my life back here in Norway.
Neither my husband nor I have work in the US yet, but I assume we'll find something sooner or later. My husband might be the main source of income for a while, and he's already in place and have been using his network and getting some interviews already. I'm pretty resourceful, and I have some ideas for work that I think I have a shot at getting. So income should be generated fairly soon after I arrive, but it is by no means guarantied. We'll rent a 3-BR (!!!) house owned by my husbands family, for $500 per month, fairly centrally located. I'll be in biking distance to some of the jobs I'm hoping for, and I'm planning to rent out a room via AirBnB as a side income.
Now, I'll be selling my apartment in Norway, and will be left with anywhere from $10 000 to $35 000 (depending on how much I get for my apartment) after I've paid off my student debts. My husband has about $20 000 saved up. I want to increase our savings rather than dip into it, but I also do realise that we need to have access to some of this money until our finances are a bit more stable again.
What do we do with our savings, given that we don't yet have a stable income?
And what should we do once we manage to get a stable income?
Should I pay off student debt, or ask for a no-interest-break due to my lack of income (yes, this is possible in Norway)?
Long-term investing seems like a bad idea in our situation, so I'm thinking of putting most of it into a savings account, but how do I find a good bank for my needs?
And what about health insurance?
Will I even get health insurance without a job?
Am I required to get it despite not having citizenship?
Also, does anyone have some tips and info about transferring large sums of money between countries? My visa means that I am allowed to take my money with me into the US (Normally, one can only bring $10 000 trough customs, I think).
So, if you were me, but knew what you now know: what would you do in my situation? I'll be grateful for any advice on how to approach the job hunt, change of lifestyle, creating a network, adjusting to a warmer climate, tax tricks to look out for, you name it!
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I moved from Maine to Florida, and so had a big temperature change. Where in Texas will you be? The reason I ask is that Texas is an enormous state with several climates. The area around Houston is humid, similar to Florida, but most of the rest of the state is dry. In the south of Texas it does not get very cold, but in the north it does. Also, the various cities in Texas have different cultures. Austin is artsy, San Antonio is casual, Dallas is more dressed up.
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I can imagine how overwhelming moving to a new country can be, so let me see if I can offer any guidance...
First off, don't panic. It will likely be a tough transition, not sure if you've ever visited the US before, but be prepared for culture shock, and know that you will probably feel home sick, and that it's totally normal! Just give it time, and don't rush or make yourself feel guilty for whatever you feel during the change. I've lived and studied abroad in a number of countries and some transitions were more difficult than others, but once I settled in I loved it :)
You have a decent amount of savings, so you should be OK, though you don't list your expenses so it's tough to tell how long it will last if both of you don't find jobs for a while. But given rent is $500 and you plan to rent out one room on AirBnB, your mindset is already there and I am sure you will be fine! Don't be above taking a temporary job to make a little income while you look for something better... even working at a Starbucks or something would probably help, and it would help you make new friends!
Once you do get a stable income, set aside 6-12 months of basic expenses as your 'emergency fund'. If your jobs are stable, go for 6.. if they are unstable, go for 12 months, or somewhere in between. This is also when I would look at paying off the student loans.. how much do you owe? I wouldn't worry about it until you are settled into your new place.
Yes, a savings account would be best for right now, just until you and your husband get on your feet. I can't speak to which bank, but you could keep a few thousand in a checking account, and then keep the rest of your savings in an online savings account like Ally or something similar, that pays a little more interest. However, once you have your emergency fund at an adequate level, you can start investing for the long haul.
As for health insurance, depending on what job your husband gets you might be able to be covered.
I've never transferred large sums of money between countries, but I wouldn't carry the physical cash with me if I could help it... if you open an American bank account you should be able to wire money?! It may have some fees associated, but carrying $10,000 through customs would scare the heck out of me, not to mention when you go to deposit it in a bank they will give you some weird looks...
Hope this helps, it's my $0.02 anyway. I have a few Norwegian friends and I miss them dearly :)
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For cheap international cross-currency transfer, look at transferwise.com. I see they offer NOK-USD at 0.5%, which is very hard to beat (even taking cash is likely more expensive!). I've been using them for CHF-EUR, same range of amounts you list, without problems.
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What do we do with our savings, given that we don't yet have a stable income? Use as an emergency/draw down fund until you establish a stable income. You probably won't need all of it, but it's also probably not worth moving around the portion you won't need.
And what should we do once we manage to get a stable income? Open a brokerage account and invest it. Folks here recommend Vanguard. I personally use and like Schwab. Either is good as long as you're using the low fee index funds/ETFs offered (which Vanguard offers more of). It sounds like you have a family support system through your husband in Texas, so IMO you should invest any money you don't need beyond a month or two worth of expenses.
Should I pay off student debt, or ask for a no-interest-break due to my lack of income (yes, this is possible in Norway)? Taking advantage of the no-interest-break is the way to go. That's like getting free money. Take the money that would have gone towards your student loans and invest it.
Long-term investing seems like a bad idea in our situation, so I'm thinking of putting most of it into a savings account, but how do I find a good bank for my needs? Why is long-term investing a bad idea in your situation? Savings accounts in the US do not offer an acceptable return on your money at the moment. You will lose to inflation (even the very low inflation we currently have will erode your money's value over time).
And what about health insurance? In the US, most are covered through their jobs. If you do not have income, or your income is very low, you will be eligible for ACA subsidies. I am not an expert on this, but others here can probably help you.
Will I even get health insurance without a job? See above.
Am I required to get it despite not having citizenship? My understanding is yes or you'll pay the fee, but again, I'm not the expert on ACA.
Also, does anyone have some tips and info about transferring large sums of money between countries? My visa means that I am allowed to take my money with me into the US (Normally, one can only bring $10 000 trough customs, I think). See Expatriate's recommendation.
Hope that helps some. Overall, it seems like you will be off to an excellent start financially with your extremely low rent and plans to airbnb a room. I would focus more on the potential culture shock you will experience, especially if you have never visited Texas before. I've never been to Norway, but I have friends from there, and the idea of them living in some parts of Texas makes me smile. Just very different culturally, but of course, that will be part of the fun. Good luck!
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As someone who has spent a lot of time in Norway and grew up in Texas, the culture shock will probably be pretty significant. Texas is almost a polar opposite in many ways, and you may need to look pretty hard at the positives while you adjust to the negatives. Diet is probably one that will pose significant challenge. Keep in mind that Texas is several times larger in both size and population than all of Norway, so your mileage may vary depending on where you are.
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From a Brit's perspective.
You probably won't be biking as much as you hope. In summer it's impossible to walk more than 1km in Houston before you're a dripping pile of sweat, in winter there are torrential rain storms. But the main problem is that the roads aren't built to walk or bike - there can be two halves of a shopping mall divided by a multi-lane highway and no way of getting between them other than driving to the next junction.
Pretty soon driving an hour to a certain store or restaurant won't seem odd!
Americans, and especially those in the south, are incredibly open and friendly but I would suggest staying off the topics of religion/politics/health care. To an American "socialism" doesn't mean hospitals, education, housing and transit - it means Stalin and Hitler rolled into one.
Job wise there is an easy hire/fire culture. It wouldn't be thought odd for you to get a temp job in a bookshop/cafe - even if you are an oilfield geologist - and leave the next day when a "real" job comes up.
Don't know about insurance stuff my employer handled all that.
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From a Brit's perspective.
You probably won't be biking as much as you hope. In summer it's impossible to walk more than 1km in Houston before you're a dripping pile of sweat, in winter there are torrential rain storms. But the main problem is that the roads aren't built to walk or bike - there can be two halves of a shopping mall divided by a multi-lane highway and no way of getting between them other than driving to the next junction.
Pretty soon driving an hour to a certain store or restaurant won't seem odd!
Americans, and especially those in the south, are incredibly open and friendly but I would suggest staying off the topics of religion/politics/health care. To an American "socialism" doesn't mean hospitals, education, housing and transit - it means Stalin and Hitler rolled into one.
Job wise there is an easy hire/fire culture. It wouldn't be thought odd for you to get a temp job in a bookshop/cafe - even if you are an oilfield geologist - and leave the next day when a "real" job comes up.
Don't know about insurance stuff my employer handled all that.
From another Brit's perspective (I have lived in Oregon for almost 20 years).
The North and South are like two different countries. You will find freeways named after Republican (right wing) presidents but none after Democrats (left wing).
Left wing in Texas is the same as "Center" in most of Europe. In the parts of Texas I am familiar with the idea of a welfare state is considered evil.
Having said that Southerners are warm and welcoming but its a little shocking when they might drop and overtly racist comment and not even bat an eyelid.
There are many opportunities to do well here, but its a "high risk proposition in that if you do well you'll do great. If you don't you can find yourself in abject poverty, the likes of which will amaze most Europeans.
As to transferring money, my local credit Union used to transfer money for $30, no matter what the amount.
BE AWARE.. if you have an account in Norway you will HAVE to report this on an FBAR form. If you have a pension held by a company on your behalf you will have to declare this (if you know the value and that value exceeds $100,000)... The pension is declared on form 8893.
The penalties for not declaring overseas accounts or pensions are SEVERE.. Much worse than if you go caught cheating on your taxes (from what I hear).
If you are selling property back in Norway.. Be VERY careful!!!! The rule I almost got bit by worse like this.
Say 20 years ago.. long before you had any thought of moving to the US you bought a house and that house at THAT time the exchange rate was 2:1 for arguments sake.. So say you took out a mortgage for 100,000 in local currency.. well that would be $200,000.
Ok so now lets say you sell that house today and you paid back the same amount of mortgage i.e 100,000 in local currency... .. Ah, but the exchange rate is now 1.8:1... so you only paid back $180,000.
The IRS will then say.. Oh wait a minute, you have just made an easy $20,000 profit and that will be taxed as INCOME tax in that year.
Note this has nothing to do with capital gains.. just the difference in what you borrowed in dollars vs what you paid back.
Its a terribly unfair rule but a lot of expats have been bitten by it.
How to get around it?... make sure you either lose out in the exchange rate deal.. or sell your property the calendar year BEFORE you come to the US.. I.e sell in December, then come to the US after Jan 1st.
Anything you did in the prior year in Norway is none of the IRS's business.
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This is not a good time to be looking for work in Houston. Hopefully you are not headed there.
Sign up with temp agencies immediately. They will get you work. It might be mind-numbing, but you'll be making some money while searching for the real thing.
Don't buy groceries at Whole Foods Market or Central Market.
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Welcome to the US and to the forum! I am a Brit living in Dallas, I moved here from Germany about 15 years ago so had a similar transition. I won't lie, the systems are a LOT different here than in Europe and it does take a while to understand it all. Research as much as you can, this forum will be a great help.
Dallas is a booming job market right now (again, not sure where in Texas you are planning to move to) but it is an at-will employment state which means no contract (unless you are pretty high up in a company) and you can quit or be fired for no reason, at any time. Takes a bit of getting used to after the European model of contracts and notice periods but if you are looking for temporary work initially, it might work in your favor.
Since you are a permanent resident I believe you do need health insurance otherwise you will pay a penalty. You should be able to get coverage through your husband's job.
I would advise getting help to file your 2015 taxes since I believe you will have to include any income earned in Europe for this year. Whatever you do, be honest with the IRS.
Check meetup.com to make new friends, in the bigger cities they have lots of European meet ups. Like the other posters said, folks in Texas are very friendly. Personally, I love it here and it's become home.
Good luck!
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You should check if you can keep the Norwegian social security membership (which also covers medical expences) until you get a job. It looks like there might be a 6 or 12 month rule.
Also, taxes. Unless you are giving up your citizenship, you will have to sort out that for a few years. There is a tax treaty, so you won't be hit twice, but you will have to report to both countries.
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Have you ever changed countries before? I have a few times. You will go through phases of "Wow I love Texas" and "Oh My God I Hate Texas why did I ever come here!"
This is a process of adapting to a new way of life. Just try to remember during the peak highs and bottom lows that it is a normal process, and your feelings WILL change.
You will need insurance, it is the law now in the US.
Moving money is not hard. Your bank will be able to do that for you, for a fee.
As for taxes, I use Turbo-tax to sort out my international accounts.
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Yes, a savings account would be best for right now, just until you and your husband get on your feet. I can't speak to which bank, but you could keep a few thousand in a checking account, and then keep the rest of your savings in an online savings account like Ally or something similar, that pays a little more interest. However, once you have your emergency fund at an adequate level, you can start investing for the long haul.
Thanks for the tip, I'll look into Ally. Just having some names to research helps me get started :) It sounds like I'm not completely off track with my thinking, which is reassuring.
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For cheap international cross-currency transfer, look at transferwise.com. I see they offer NOK-USD at 0.5%, which is very hard to beat (even taking cash is likely more expensive!). I've been using them for CHF-EUR, same range of amounts you list, without problems.
Thanks! Will look into trasferwire for sure. I wonder if a 0.5 % rate is competitive when tranfering larger amounts, but it also depends on exchange rate. Always good to have several options to compare!
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Hope that helps some. Overall, it seems like you will be off to an excellent start financially with your extremely low rent and plans to airbnb a room. I would focus more on the potential culture shock you will experience, especially if you have never visited Texas before. I've never been to Norway, but I have friends from there, and the idea of them living in some parts of Texas makes me smile. Just very different culturally, but of course, that will be part of the fun. Good luck!
Thanks! I'm not sure I'll be comfortable with an emergency fund of just 1-2 months worth (I picture the US as a lot less safe in terms of job sequrity and access health service), but I do think I want to follow your suggestion on the student loans. I'm very lucky to have a sequrity net through my in-laws, but I would prefer to not ever have to use it :)
My husband stuggled quite a lot living in Norway, so I'm aware of the potential culture shock.. It will probably be entertaining to look back on, at least I try to comfort myself with that thought. I think I'm fairly open and outgoing compared to your average Norwegian - which still makes me cold and introverted by Texas standards I guess :-/
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As someone who has spent a lot of time in Norway and grew up in Texas, the culture shock will probably be pretty significant. Texas is almost a polar opposite in many ways, and you may need to look pretty hard at the positives while you adjust to the negatives. Diet is probably one that will pose significant challenge. Keep in mind that Texas is several times larger in both size and population than all of Norway, so your mileage may vary depending on where you are.
Yeah, that's what my husband is saying too. I love cooking, so I think the diet aspect will be both interesting and challenging. I used to be a vegetarian, and I'm very skeptical of the meat industry in the US. We didn't eat much meat when we lived in Norway, but I think my husband will want to eat more meat with the lower prices on meat in TX.. I'm excited about getting to taste more mexican food (or is it TexMex, since it's Texas?) and to shop at those huuuuge supermarkets. I used to love buying bulk when I lived in CA, and I want to try to grow vegetables that are impossible to grow without a green house in Norway. One of the things I worry about the most is the politeness and social "rules" in the work place.. My husband thought all Norwegians were rude, and I'm worried about meeting the politeness and social codes, especially at work.
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From a Brit's perspective.
You probably won't be biking as much as you hope. In summer it's impossible to walk more than 1km in Houston before you're a dripping pile of sweat, in winter there are torrential rain storms. But the main problem is that the roads aren't built to walk or bike - there can be two halves of a shopping mall divided by a multi-lane highway and no way of getting between them other than driving to the next junction.
Pretty soon driving an hour to a certain store or restaurant won't seem odd!
Americans, and especially those in the south, are incredibly open and friendly but I would suggest staying off the topics of religion/politics/health care. To an American "socialism" doesn't mean hospitals, education, housing and transit - it means Stalin and Hitler rolled into one.
Job wise there is an easy hire/fire culture. It wouldn't be thought odd for you to get a temp job in a bookshop/cafe - even if you are an oilfield geologist - and leave the next day when a "real" job comes up.
Don't know about insurance stuff my employer handled all that.
Ugh, I hope you're not right about the driving, but fear you might be.. I hate to drive, but I'm also not very heat tolerant. There is a bike lane going by our house (I've been driving around on Google streetview), but I still don't know how well connected or safe it is.
Yeah, I remember being shocked the first time I was confronted with being a "socialist" (I was young, and stumbled into a tea-party demonstration without knowing what it was), as if free education and health care was a bad thing. I guess it might be smart to be mentally prepared to meet people of similar views again. It usually would just amuse and interest me, but I imagine those things are harder to hear if I'm really homesick :)
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From another Brit's perspective (I have lived in Oregon for almost 20 years).
The North and South are like two different countries. You will find freeways named after Republican (right wing) presidents but none after Democrats (left wing).
Left wing in Texas is the same as "Center" in most of Europe. In the parts of Texas I am familiar with the idea of a welfare state is considered evil.
Having said that Southerners are warm and welcoming but its a little shocking when they might drop and overtly racist comment and not even bat an eyelid.
There are many opportunities to do well here, but its a "high risk proposition in that if you do well you'll do great. If you don't you can find yourself in abject poverty, the likes of which will amaze most Europeans.
As to transferring money, my local credit Union used to transfer money for $30, no matter what the amount.
BE AWARE.. if you have an account in Norway you will HAVE to report this on an FBAR form. If you have a pension held by a company on your behalf you will have to declare this (if you know the value and that value exceeds $100,000)... The pension is declared on form 8893.
The penalties for not declaring overseas accounts or pensions are SEVERE.. Much worse than if you go caught cheating on your taxes (from what I hear).
If you are selling property back in Norway.. Be VERY careful!!!! The rule I almost got bit by worse like this.
Say 20 years ago.. long before you had any thought of moving to the US you bought a house and that house at THAT time the exchange rate was 2:1 for arguments sake.. So say you took out a mortgage for 100,000 in local currency.. well that would be $200,000.
Ok so now lets say you sell that house today and you paid back the same amount of mortgage i.e 100,000 in local currency... .. Ah, but the exchange rate is now 1.8:1... so you only paid back $180,000.
The IRS will then say.. Oh wait a minute, you have just made an easy $20,000 profit and that will be taxed as INCOME tax in that year.
Note this has nothing to do with capital gains.. just the difference in what you borrowed in dollars vs what you paid back.
Its a terribly unfair rule but a lot of expats have been bitten by it.
How to get around it?... make sure you either lose out in the exchange rate deal.. or sell your property the calendar year BEFORE you come to the US.. I.e sell in December, then come to the US after Jan 1st.
Anything you did in the prior year in Norway is none of the IRS's business.
Thanks for a some tax info. I will have to look into the FBAR-form.
I didn't get your point about the exchange rate - I bought my apartment 1.5 years ago, from Norway. I would normally tax to Norway on the profit, but since I have lived there for over a year and haven't rented it out, the profits are tax exempt in Norway. The way I understand the tax treaty between Norway and the US, one shouldn't be taxed twice.. how does it then work when I would normally tax to Norway on this, but am exempt?
I'll look into it for sure, thanks for making me aware (even though I didn't fully understand) :)
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Americans, and especially those in the south, are incredibly open and friendly but I would suggest staying off the topics of religion/politics/health care. To an American "socialism" doesn't mean hospitals, education, housing and transit - it means Stalin and Hitler rolled into one.
I remember I had two couchsurfers (a couple) from the south of the US visit us in Munich for a few days. We discussed many things, but when I explained to them that some domains like infrastructure (railway system, roads, electricity grid) should be run by the county (aka socialized), because you can not make a profit from them, they just looked at me with silent disbelief. Being very polite, they did not respond at all, but I found that situation very funny.
What I found very scary was that the guy has been to war in the middle east for some time and we did not talk about that topic.
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Americans, and especially those in the south, are incredibly open and friendly but I would suggest staying off the topics of religion/politics/health care. To an American "socialism" doesn't mean hospitals, education, housing and transit - it means Stalin and Hitler rolled into one.
I remember I had two couchsurfers (a couple) from the south of the US visit us in Munich for a few days. We discussed many things, but when I explained to them that some domains like infrastructure (railway system, roads, electricity grid) should be run by the county (aka socialized), because you can not make a profit from them, they just looked at me with silent disbelief. Being very polite, they did not respond at all, but I found that situation very funny.
What I found very scary was that the guy has been to war in the middle east for some time and we did not talk about that topic.
Yup, I could easily get into a similar situation. In Norway we tend to justify social politics with much tax money it generates or saves, and so a functioning public transport system or free health care is kinda "profitable" to a lot of us. It enables more people to work, and thus creates tax payers... But then again, tax in itself might be an off-topic ;)
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This is not a good time to be looking for work in Houston. Hopefully you are not headed there.
Sign up with temp agencies immediately. They will get you work. It might be mind-numbing, but you'll be making some money while searching for the real thing.
Don't buy groceries at Whole Foods Market or Central Market.
We're going to live in San Antonio. I didn't know temp agencies were thing over there too - thanks for the tip! That might be a good way to get some experience with social codes at worklpaces and some US references.
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Welcome to the US and to the forum! I am a Brit living in Dallas, I moved here from Germany about 15 years ago so had a similar transition. I won't lie, the systems are a LOT different here than in Europe and it does take a while to understand it all. Research as much as you can, this forum will be a great help.
Dallas is a booming job market right now (again, not sure where in Texas you are planning to move to) but it is an at-will employment state which means no contract (unless you are pretty high up in a company) and you can quit or be fired for no reason, at any time. Takes a bit of getting used to after the European model of contracts and notice periods but if you are looking for temporary work initially, it might work in your favor.
Since you are a permanent resident I believe you do need health insurance otherwise you will pay a penalty. You should be able to get coverage through your husband's job.
I would advise getting help to file your 2015 taxes since I believe you will have to include any income earned in Europe for this year. Whatever you do, be honest with the IRS.
Check meetup.com to make new friends, in the bigger cities they have lots of European meet ups. Like the other posters said, folks in Texas are very friendly. Personally, I love it here and it's become home.
Good luck!
Thanks :) I bet the job market will be a somewhat painful transition. Not having the same salary and benefits as now isn't really the end of the world, but will take some getting used to. I'll gladly endure the pay cut and loss of benefits if I find some more interesting work in TX though :) There seems to be a greater variation in the US job market. I'm hoping to find that to be true :)
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Congratulations. Takes me back a decade or two! I’m a US Citizen married to a Norwegian “gal” who also has a green card from when we lived in the States (Houston) for a few years. We met 25+ years ago and have moved around the world (6 countries to date if you include the USA and Norway) and will be most likely heading to Houston next summer for a new 3-4 year stint.
Couple of immediate thoughts
- Do everything legally when it comes to bank accounts, taxes etc for the USA. File your income taxes, report your bank accounts, don’t forget the FBAR and FATCA. This can’t be stressed enough.
- Long Term Investing - As a Green Card holder, do not invest any kind of mutual funds or similar investments etc outside the USA unless you completely understand how you need to report and tax them. I know of people who in the last few years have had to sell and move it all to the USA as it just wasn’t worth the hassle. Also, the US has a much better investment environment so it makes sense to have all of this in the USA regardless. Vanguard is an excellent choice.
- Financial and Bank Accounts – make sure you don’t have any joint accounts with anyone in Norway. For example, maybe your family has a shared account for “Hytte” expenses. If you have a joint account with a non-USA citizen or Green Card holder they will be drawn into the FBAR / FATCA reporting requirements. Clean all of this up before you leave. But keep a financial presence in Norway (credit cards etc.) if you at all intend to spend any time in Norway moving forward.
- Norway Bank Account – do not close them, keep them open and report them. We keep the address in Norway (family members) rather than have a US address. Keeps things much more simple.
- US Bank Accounts – you are going to be shocked at the US banking system. Just wait till the first time someone writes you a check and you have to deposit it in the bank. Don’t even ask about transfers. That said, your primary criteria for the bank will be their online banking services. Check out USAA, they have an international presence, free ATM withdrawals in the USA around the world, 1% or 0% Foreign Service Charges on withdrawals and credit card charges for when you are in Norway etc.
- Will and Testament – This may or may not be a problem, but Norwegian Inheritance laws are completely different than US laws. We made sure that all our Norwegian assets will pass to me as much as possible rather than 50% of them going to the kids, bypassing me.
- Emergency Fund – as a multi-cultural couple moving between countries, we realized pretty quickly that the social safety nets the “others” are getting generally don’t apply to us and in Texas they are not much to begin with. Build up as much cash as quickly as possible, 6 / 12 months or whatever.
- Citizenship – Bad Luck here. Norwegians are one of the few countries out there that do not allow dual citizenship, so if you become a US citizen, then you will lose your Norwegian citizenship. The kids will be allowed to have both as they are “born” with both of them, but if you gain a new citizenship then you lose your Norwegian. For us that is a non-starter so we just deal with the Green Card forever.
- Selling Apartment, Student loan etc. – This is primarily a mathematical calculation. We decided early on to keep all the Norway money in Norway and the rest of the world money in the USA as much as possible. Right now this is even more important as the X-rate is horrible. We ended up buying a Hytte for skiing (Beitostolen) with our extra NOK after she paid off her University loans and since them have rented it out. It was cash flow positive from day one (paid off many years ago wiht surplus cash). We never used it during Easter etc., so got the big rents. We have continued that and own a second one in Sorlandet. Plus we have had a loss on it for the whole time that we can use to reduce our USA taxes. This also gives us a place to take the kids every year in Norway.
- Health Insurance – no clue, but my wife’s health insurance was cancelled in Texas because of a false/positive on a test. Talk about one pissed off Norwegian….. That ended up costing us a chunk of money, but I guess things have changed since then.
- Transferring Money – DNB isn’t bad for this, but we really try not to take money out of Norway. Their is no upside to bad exchange rates and transfer fees.
- Stable Income. I’m betting you will be able to make money quickly in the USA, it’s not Europe. When you get to Houston, meet up with the Norwegian Chamber of Commerce, network with other Norwegians. There is always pent up demand by Norwegian companies for Norwegians who can work outside of Norway. Don’t know your education, but don’t underestimate your value as a Norwegian outside of Norway if you want to work. We’ve been doing that for 20+ years and it’s been very good to us. Make it a challenge to get by with as little as possible and keep as much money in Norway.
Lots more I could go into but I think you get the idea. PM me if you have any specific questions.
Good Luck.
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Give yourself time to adjust to the heat in spring. Better to drive than to pass out on the sidewalk. My mother fainted on the sidewalk in San Antonio one summer, and our reference point was Dallas, not Oslo.
San Antonio is a very old city by American standards, so do check out the old Spanish missions. Historical tours will also help you adjust to the cultural heritage of the place. Know that you will be adjusting to two new cultures: the Texas flavor of American culture, and Mexican culture.
There are many universities in SA. Maybe none have a Norwegian language program, but it's worth checking (and any other languages you're fluent in) to see if they could use you.
Consider posting an anonymized version of your resume if you are figuring out how to adjust it to American standards.
People have posted about Americans saying shocking things, but in my experience Europeans are more likely to say outrageous things in the workplace. Race, religion, and politics simply aren't appropriate discussions in the office.
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Congratulations. Takes me back a decade or two! I’m a US Citizen married to a Norwegian “gal” who also has a green card from when we lived in the States (Houston) for a few years. We met 25+ years ago and have moved around the world (6 countries to date if you include the USA and Norway) and will be most likely heading to Houston next summer for a new 3-4 year stint.
Wow, this was all very helpful! Thank you so much! I've heard of the FBAR, but now I learned about FATCA. I have a feeling you're in a slightly better position financially than me with all your hytter and that, but I do see your point about avoiding bad exchange rates and transfer fees. Perhaps I'll try to be strategic about not only how, but also when to transfer money over. Ideally, I would like to keep my cute & central 1BR Oslo apartment and rent it out, but I don't think I'll be able to balance the incomming rent with my mortgage+rent+tax and still have room to budget for unforseen vacancies and other expenses.
I'll keep my bank account for a while, although interest rates on savings are virtually negative right now. I'm not all that interested in putting large sums of money in an index fund either, since my situation and time-scope is so uncertain. If I keep my student loan through a no-interest-break and put aside a large chuck of the apartment-money, I might save enough for it to be worth it. I'd have to look into the tax implications first, though.
I'm not going to Houston, but I can imagine it being a good place to find Norwegian oil companies to work for (although now is maybe not the best of times?). Perhaps there are some in San Antonio, too? I'm sure it would be helpful to hear how other Norwegians approached going job hunting and adjusting to insane heat and all that!
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Give yourself time to adjust to the heat in spring. Better to drive than to pass out on the sidewalk. My mother fainted on the sidewalk in San Antonio one summer, and our reference point was Dallas, not Oslo.
San Antonio is a very old city by American standards, so do check out the old Spanish missions. Historical tours will also help you adjust to the cultural heritage of the place. Know that you will be adjusting to two new cultures: the Texas flavor of American culture, and Mexican culture.
There are many universities in SA. Maybe none have a Norwegian language program, but it's worth checking (and any other languages you're fluent in) to see if they could use you.
Consider posting an anonymized version of your resume if you are figuring out how to adjust it to American standards.
People have posted about Americans saying shocking things, but in my experience Europeans are more likely to say outrageous things in the workplace. Race, religion, and politics simply aren't appropriate discussions in the office.
Good point about the language programs. I find it kinda ridiculous that people in Texas would want to learn Norwegian, but then I've noticed people offering Norwegian courses here and there (I was an exchange student, and looked at a lot of different prorams and schools before deciding). Personally I took an urdu class for one semester, so I probably shouldn't judge anyone wanting to learn Norwegian :) My German pronounciation is good, but my grammar and vocabulary sucks - maybe I could be a pronounciation coach? :P
I like the idea of getting help with how to sell my resume. I'm an ecologist/biologist, and work in the public sector in Norway with environmental issues related to roads. I'm not sure how transferable a lot of my work experiences are, given that a lot of what I work with is based on understanding the Nowegian laws and systems. But I've heard there are a lot of roads in Texas :) If I could find work that builds on my current knowledge and experience, I would probably get a higher salary than if I start at scratch. A change in career paths would be alright with me, though, and for now I am very open to just any means of making money.
My dream job would be to work as a research assistant in the welfare department of the primate research center in SA. Working with positive reinforcement and finding ways to increase welfare for animals in captivity would be immensly more fulfilling and interesting than what I do now (but pay a lot less). I've seen them advertising similar positions now and then, so I definetly want to contact their HR-department once I get there (But I'm a bit unsure about how to go about it).
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It's Texmex definitely, authentic Mexican food is very different from anything you will find in a chain restaurant.
You may try looking for National Oilwell Varco and Aker Kvaerner sites in San Antonio, but honestly you are probably just exotic enough to open up plenty of doors that might otherwise by heavily competed for anywhere. As others have stated, be very careful about not bringing up religion, race and politics at work. Even if others are discussing it I would stay somewhat neutral.
I'm sure you will enjoy the riverwalk and downtown San Antonio, it's sort of like walking around in Kristiansand, but 50 degrees hotter and has rabbits the size of small dogs ;). If you are arriving in winter it will be much easier to adjust to the heat.
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As far as meat, you can very easily find local grass fed organic beef anywhere in Texas. I would be much more cautious over the quality and origin of fish products. It's simply not part of the average Texans diet, with the exception of catfish, which is usually deep fried to the point of no longer being fish.
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Welcome across the great big fjord. I'm also norwegian, though in the north east rather than the deep south. Lived here for ~8 years on a green card now. You got lots of good pointers from others here. Just a few things I can suggest:
- Don't pay off your student loan. The rate there is <3% now and moving to a new country with no job I'd say it's much better to keep that cash on hand. Personally, with that low rate I'm only paying the minimum for now, perhaps it will change if I have some extra cash in the future or the rate goes up.
-I would focus on holding emergency cash, moving, getting settled with jobs and then start thinking about longer term investing. You can post back here once this is done.
Taxes
- With the huge drop in the NOK > USD exchange rate you should have fewer problems with your apartment sale (tax wise, you of course loose out in the move). It might even register as a loss if you report purchase value at the rate from 1.5 years ago, vs sales value in rate when it sells. If that is indeed how the system works. I don't remember exactly, the IRS explanation forms might tell you. Some specify using the average rate that year. Taxes in the US are painful, especially for foreigners. Prepare to do some research. I use taxact.com to file
- There are specific rules to be considered not liable for taxes to norway. Involving not owning property (or home?) for 3 years or so. So get rid of it and don't buy any hytte.. Also make sure you report your move to the government (I didn't and it was a hassle).
http://www.skatteetaten.no/no/Person/Selvangivelse/tema-og-fradrag/Utland/flyttet-til-eller-fra-Norge/?chapter=76287#kapitteltekst
Transferring money:
Bring some cash for immediate needs. If you have to, use ATMs to take cash from Norwegian banks (but you'll get a terrible rate!) Set up US bank account. Then use Transferwise to send money (https://transferwise.com). I sent using my NO bank (skandiabanken) to the US, but there was a fee and a terrible rate. I've used Transferwise twice now and it's great, and cheaper. You just need the routing and account number, both printed on those antiquated paper slips americans insist on using; checks! (lol)
Fees abroad:
Personally I'd suggest charles Schwab bank for your checking account. (www.schwab.com) They charge no ATM fees, including abroad if you're going back to norway often! They're mainly online though and have few branches if you need to go into the bank (but they do have a few). Interest is poor though so I use Discover for my savings. Ally is also good.
-Capital one credit card charges no fees for use abroad. They were also the first one to give me a credit card with no US credit history (a whooping $300 limit) Now called Quicksilver something. You'll probably need a job first though. Can use http://www.creditcards.com to research other cards for no history and/or no foreign fees. You need to start building credit asap!
It's Texas, but try to avoid buying a pickup truck..
Good luck!
If you have other questions feel free to PM me. In Norwgian is acceptable too:)
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It's Texmex definitely, authentic Mexican food is very different from anything you will find in a chain restaurant.
You may try looking for National Oilwell Varco and Aker Kvaerner sites in San Antonio, but honestly you are probably just exotic enough to open up plenty of doors that might otherwise by heavily competed for anywhere. As others have stated, be very careful about not bringing up religion, race and politics at work. Even if others are discussing it I would stay somewhat neutral.
I'm sure you will enjoy the riverwalk and downtown San Antonio, it's sort of like walking around in Kristiansand, but 50 degrees hotter and has rabbits the size of small dogs ;). If you are arriving in winter it will be much easier to adjust to the heat.
I find it hard to belive that I should be exotic in any way, but it would be great if that's true :) I'll look into your leads on the Norwegian oil companies!
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Welcome across the great big fjord. I'm also norwegian, though in the north east rather than the deep south. Lived here for ~8 years on a green card now. You got lots of good pointers from others here. Just a few things I can suggest:
Heeeei :)
Thanks for the good tips on banks and tranfers! I'm not planning to buy a hytte any time soon, so no worries there. My family has two hytter, but they will not be handed down to me for many, many years to come (hopefully).
The taxes on the Norwegian end are under control - making me feel very grown up! :) I've gotten good help from the tax authorities in figuring out how a move work affect my taxes in Norway. I'd want to stay in Folketrygden for as long as possible, just so that I have a retreat option and access to health services in Norway for while longer, but I understand that this is not guaranteed.
This whole tax-on-apartment-sale to the US is a bit scary, but precicely the kind of thing I wouldn't have thought of if it wasn't for the help from this forum. Thanks!! I will spend some time looking into the implications, for sure! The Norwegian tax guys said that I would tax to (only) Norway on any income generated by renting out the apartment, and I might want to compare that to the tax implications in the US of a sale.
As for the pickup truck... I'm fighting it, but my husband says that we might get his parents truck for free. I'd like a nice little prius... He wants something he can put "truck nuts" (!!!!!) on... gaaah!
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Welcome across the great big fjord. I'm also norwegian, though in the north east rather than the deep south. Lived here for ~8 years on a green card now. You got lots of good pointers from others here. Just a few things I can suggest:
Heeeei :)
Thanks for the good tips on banks and tranfers! I'm not planning to buy a hytte any time soon, so no worries there. My family has two hytter, but they will not be handed down to me for many, many years to come (hopefully).
The taxes on the Norwegian end are under control - making me feel very grown up! :) I've gotten good help from the tax authorities in figuring out how a move work affect my taxes in Norway. I'd want to stay in Folketrygden for as long as possible, just so that I have a retreat option and access to health services in Norway for while longer, but I understand that this is not guaranteed.
This whole tax-on-apartment-sale to the US is a bit scary, but precicely the kind of thing I wouldn't have thought of if it wasn't for the help from this forum. Thanks!! I will spend some time looking into the implications, for sure! The Norwegian tax guys said that I would tax to (only) Norway on any income generated by renting out the apartment, and I might want to compare that to the tax implications in the US of a sale.
As for the pickup truck... I'm fighting it, but my husband says that we might get his parents truck for free. I'd like a nice little prius... He wants something he can put "truck nuts" (!!!!!) on... gaaah!
Be sure to post a picture of your Prius with truck nuts.. At least it's a free truck. My biggest problem with them is the $50k+ price tag, before the terrible milage. I know little about Texas, but it's my understanding a Prius will get vandalized the first time you leave it in a parking lot..
Not sure it's possible, but if you could sell your apartment in oslo this year, then move to the US next year you probably wouldn't have to pay US tax on it at all. Main point is that the US is the only (?) country to tax on global income. There is a tax credit, but at least in my cases it did not totally offset it.
I was in Folketrygden while a student here, but think it will lapse after a while. I really didn't look into it much. I think there might be an option to pay into it? But then you're basically paying for health insurance. I paid for private insurance here for a few months between school and full job. I would not suggest going without.
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San Antonio is not the Deep South and priuses are very common in Texas.
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From another Brit's perspective (I have lived in Oregon for almost 20 years).
The North and South are like two different countries. You will find freeways named after Republican (right wing) presidents but none after Democrats (left wing).
Left wing in Texas is the same as "Center" in most of Europe. In the parts of Texas I am familiar with the idea of a welfare state is considered evil.
Having said that Southerners are warm and welcoming but its a little shocking when they might drop and overtly racist comment and not even bat an eyelid.
There are many opportunities to do well here, but its a "high risk proposition in that if you do well you'll do great. If you don't you can find yourself in abject poverty, the likes of which will amaze most Europeans.
As to transferring money, my local credit Union used to transfer money for $30, no matter what the amount.
BE AWARE.. if you have an account in Norway you will HAVE to report this on an FBAR form. If you have a pension held by a company on your behalf you will have to declare this (if you know the value and that value exceeds $100,000)... The pension is declared on form 8893.
The penalties for not declaring overseas accounts or pensions are SEVERE.. Much worse than if you go caught cheating on your taxes (from what I hear).
If you are selling property back in Norway.. Be VERY careful!!!! The rule I almost got bit by worse like this.
Say 20 years ago.. long before you had any thought of moving to the US you bought a house and that house at THAT time the exchange rate was 2:1 for arguments sake.. So say you took out a mortgage for 100,000 in local currency.. well that would be $200,000.
Ok so now lets say you sell that house today and you paid back the same amount of mortgage i.e 100,000 in local currency... .. Ah, but the exchange rate is now 1.8:1... so you only paid back $180,000.
The IRS will then say.. Oh wait a minute, you have just made an easy $20,000 profit and that will be taxed as INCOME tax in that year.
Note this has nothing to do with capital gains.. just the difference in what you borrowed in dollars vs what you paid back.
Its a terribly unfair rule but a lot of expats have been bitten by it.
How to get around it?... make sure you either lose out in the exchange rate deal.. or sell your property the calendar year BEFORE you come to the US.. I.e sell in December, then come to the US after Jan 1st.
Anything you did in the prior year in Norway is none of the IRS's business.
Thanks for a some tax info. I will have to look into the FBAR-form.
I didn't get your point about the exchange rate - I bought my apartment 1.5 years ago, from Norway. I would normally tax to Norway on the profit, but since I have lived there for over a year and haven't rented it out, the profits are tax exempt in Norway. The way I understand the tax treaty between Norway and the US, one shouldn't be taxed twice.. how does it then work when I would normally tax to Norway on this, but am exempt?
I'll look into it for sure, thanks for making me aware (even though I didn't fully understand) :)
Its nothing to do with Norwegian Taxes.. its US taxes. Its also not about the "profit" you made on the apartment.. its about the loan you took out and how many dollars you borrowed, vs the number dollars you had to pay back to pay off the loan.
Its is (or was in 1997 at least) a nasty little loophole that could cost you thousands of dollars!
If you sell that apartment in the same calendar that you come to the US you could potentially be in trouble. If you intend to sell in the year BEFORE you come over you are exempt. This why you must be very careful.
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Not sure it's possible, but if you could sell your apartment in oslo this year, then move to the US next year you probably wouldn't have to pay US tax on it at all. Main point is that the US is the only (?) country to tax on global income. There is a tax credit, but at least in my cases it did not totally offset it.
I was in Folketrygden while a student here, but think it will lapse after a while. I really didn't look into it much. I think there might be an option to pay into it? But then you're basically paying for health insurance. I paid for private insurance here for a few months between school and full job. I would not suggest going without.
From what I understand the tax on the sale of my apartment would be based on the exchange rate at the time of buying and selling it. I just looked into it, and it seems that I can sell with quite a profit and still have it register as a "loss" when considering exchange rates. I'll look deeper into it, because I really don't think I could sell it before Christmas. As for folketrygden, I'm mainly interested if I don't have to pay into it. But I guess it wouldn't hurt to look into what that would entail either.
A prius with truck nuts.. I don't know if either of us would be happy with that compromise :D
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Its nothing to do with Norwegian Taxes.. its US taxes. Its also not about the "profit" you made on the apartment.. its about the loan you took out and how many dollars you borrowed, vs the number dollars you had to pay back to pay off the loan.
Its is (or was in 1997 at least) a nasty little loophole that could cost you thousands of dollars!
If you sell that apartment in the same calendar that you come to the US you could potentially be in trouble. If you intend to sell in the year BEFORE you come over you are exempt. This why you must be very careful.
Right... ugh, well, that's tricky. But did I understand it correctly in that the exchange rate at the time of buying and selling the apartment will be used to translate gains and losses? If so, I'm alright, but if not, then.. I'm not.
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San Antonio is not the Deep South and priuses are very common in Texas.
I worked for an oil field services company and our Toyota pickup trucks were routinely vandalised on customer's sites until we learnt the lesson and bought Fords.
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yes and no.. Its not about the real profit you made on the house.. you don't pay capital gains tax on a personal residence in the US up $250k as a single person I believe.
But if you pay less dollars to pay off the LOAN on the house than what you did to borrow the money in the first place you will be taxed on that "phantom gain".. Even if you took out the loan on the house 20 years ago!
Here is a link that might help. https://renounceuscitizenship.wordpress.com/2012/10/11/how-fluctuating-fx-rates-generate-capital-gains-taxes-on-the-discharge-of-debt-us-citizens-abroad/
This talks about US Citizens but the rules are the same if you are a foreigner but are required to pay taxes in the US.
First thing.. Find out what the exchange rate was when you bought the apartment.. If the local currency is worth more dollars now than it was when you took out the loan, then you would have made a "loss" and it wont be an issue.
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Right... ugh, well, that's tricky. But did I understand it correctly in that the exchange rate at the time of buying and selling the apartment will be used to translate gains and losses? If so, I'm alright, but if not, then.. I'm not.
Yes, you can get historical "official" rates from the treasury dept website.
If you think you might be moving back then you could keep the Oslo apartment and rent it.
You pay US income tax on the income (even if you don't transfer the money) but that is pretty low (by Norwegian standards) and you get to offset a lot more costs eg. mortgage/insurance/repairs.
If you eventually sell it (while living in the USA) you will pay the US capital gains tax on the difference of the value from now to when you sell (including any currency changes) so it is useful to get a valuation from a realtor now to establish a market value.
Check what Norway's rules are on capital gains, the UK is capital gains free if you have been out of the country for 5years. And the $ strengthened so we didn't "on paper" make a profit.
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yes and no.. Its not about the real profit you made on the house.. you don't pay capital gains tax on a personal residence in the US up $250k as a single person I believe.
But if you pay less dollars to pay off the LOAN on the house than what you did to borrow the money in the first place you will be taxed on that "phantom gain".. Even if you took out the loan on the house 20 years ago!
Here is a link that might help. https://renounceuscitizenship.wordpress.com/2012/10/11/how-fluctuating-fx-rates-generate-capital-gains-taxes-on-the-discharge-of-debt-us-citizens-abroad/
This talks about US Citizens but the rules are the same if you are a foreigner but are required to pay taxes in the US.
First thing.. Find out what the exchange rate was when you bought the apartment.. If the local currency is worth more dollars now than it was when you took out the loan, then you would have made a "loss" and it wont be an issue.
Nooooo....
The dollar is considerably stronger than when I bought the apartment :(((((
Well, I guess I really need to reconsider the sale. I don't know if I can afford the tax-implication! The NOK/USD has gone from 0.15 to 0.11, and my mortgage is around $172 000. Perhaps I can get my parents involved in any way.. gaaaah!!! How frustrating!
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yes and no.. Its not about the real profit you made on the house.. you don't pay capital gains tax on a personal residence in the US up $250k as a single person I believe.
But if you pay less dollars to pay off the LOAN on the house than what you did to borrow the money in the first place you will be taxed on that "phantom gain".. Even if you took out the loan on the house 20 years ago!
Here is a link that might help. https://renounceuscitizenship.wordpress.com/2012/10/11/how-fluctuating-fx-rates-generate-capital-gains-taxes-on-the-discharge-of-debt-us-citizens-abroad/
This talks about US Citizens but the rules are the same if you are a foreigner but are required to pay taxes in the US.
First thing.. Find out what the exchange rate was when you bought the apartment.. If the local currency is worth more dollars now than it was when you took out the loan, then you would have made a "loss" and it wont be an issue.
Nooooo....
The dollar is considerably stronger than when I bought the apartment :(((((
Well, I guess I really need to reconsider the sale. I don't know if I can afford the tax-implication! The NOK/USD has gone from 0.15 to 0.11, and my mortgage is around $172 000. Perhaps I can get my parents involved in any way.. gaaaah!!! How frustrating!
So it's on the converted value of the loan? I see, then the higher USD/NOK rate makes it worse.
Sell it to your parent's before new year, then move just after Jan 1st? If you don't have a job this shouldn't be a problem right? Your husband could always move before if he has to for some reason, just make sure the person on the apartment paperwork isn't tax liable in the US in 2015..
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yes and no.. Its not about the real profit you made on the house.. you don't pay capital gains tax on a personal residence in the US up $250k as a single person I believe.
But if you pay less dollars to pay off the LOAN on the house than what you did to borrow the money in the first place you will be taxed on that "phantom gain".. Even if you took out the loan on the house 20 years ago!
Here is a link that might help. https://renounceuscitizenship.wordpress.com/2012/10/11/how-fluctuating-fx-rates-generate-capital-gains-taxes-on-the-discharge-of-debt-us-citizens-abroad/
This talks about US Citizens but the rules are the same if you are a foreigner but are required to pay taxes in the US.
First thing.. Find out what the exchange rate was when you bought the apartment.. If the local currency is worth more dollars now than it was when you took out the loan, then you would have made a "loss" and it wont be an issue.
Nooooo....
The dollar is considerably stronger than when I bought the apartment :(((((
Well, I guess I really need to reconsider the sale. I don't know if I can afford the tax-implication! The NOK/USD has gone from 0.15 to 0.11, and my mortgage is around $172 000. Perhaps I can get my parents involved in any way.. gaaaah!!! How frustrating!
Just be thankful you found out before it hurt you!
So if you can get the MORTGAGE paid back before the end of the year.. Then you both move here after Jan 1st then you should be OK.
Be careful though, if your Husband was required to file US taxes THIS year you would still get hit with a large tax bill (You would make a "profit" of $62,600 roughly).
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I don't have anything to contribute, but I find the discussion really interesting.
Preemptively, welcome to the US!
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So it's on the converted value of the loan? I see, then the higher USD/NOK rate makes it worse.
Sell it to your parent's before new year, then move just after Jan 1st? If you don't have a job this shouldn't be a problem right? Your husband could always move before if he has to for some reason, just make sure the person on the apartment paperwork isn't tax liable in the US in 2015..
Wow. I'll look into getting a loan from my parents to pay the bank loan before Christmas, and then I can sell the apartment and pay my parents back... If they're willing :-/ If not, then perhaps I could refinance it or change banks right before selling?
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Just be thankful you found out before it hurt you!
So if you can get the MORTGAGE paid back before the end of the year.. Then you both move here after Jan 1st then you should be OK.
Be careful though, if your Husband was required to file US taxes THIS year you would still get hit with a large tax bill (You would make a "profit" of $62,600 roughly).
Yes, it would definitely suck a whole lot more to find out about this one in retrospect!! (I still feel a bit sorry for myself, though.. I have to admit that :)
My husband is in the US right now, and I think he'll have to file taxes.. But the apartment is in my name only, and he has nothing to do with the buying or selling of it. Does it still affect him? (I don't think he mentioned it previous years)
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Just be thankful you found out before it hurt you!
So if you can get the MORTGAGE paid back before the end of the year.. Then you both move here after Jan 1st then you should be OK.
Be careful though, if your Husband was required to file US taxes THIS year you would still get hit with a large tax bill (You would make a "profit" of $62,600 roughly).
Yes, it would definitely suck a whole lot more to find out about this one in retrospect!! (I still feel a bit sorry for myself, though.. I have to admit that :)
My husband is in the US right now, and I think he'll have to file taxes.. But the apartment is in my name only, and he has nothing to do with the buying or selling of it. Does it still affect him? (I don't think he mentioned it previous years)
AFAIK, if he's not on the loan or other paperwork he does not have to include it in his taxes if he file as married filing separately (not jointly!). I've never done that though so do look up the rules, or perhaps someone else here knows how separate assets in marriage works.
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Just be thankful you found out before it hurt you!
So if you can get the MORTGAGE paid back before the end of the year.. Then you both move here after Jan 1st then you should be OK.
Be careful though, if your Husband was required to file US taxes THIS year you would still get hit with a large tax bill (You would make a "profit" of $62,600 roughly).
Yes, it would definitely suck a whole lot more to find out about this one in retrospect!! (I still feel a bit sorry for myself, though.. I have to admit that :)
My husband is in the US right now, and I think he'll have to file taxes.. But the apartment is in my name only, and he has nothing to do with the buying or selling of it. Does it still affect him? (I don't think he mentioned it previous years)
The cheapest way to file taxes is to file "married filing Joint".. Meaning you both are considered a single tax paying entity. If you file that way then you will almost certainly get hit with the large tax bill because its HIS taxes as well as yours. Seeing as he is filing taxes then any gain you make he would have to file.
One way round this is to file "Married filing separate". In this case you are considered two separate entities.. so anything you did PRIOR to the tax year where you moved to the US has nothing to do with the IRS.
So your Husband would file MFS THIS year.. you pay back the mortgage this year (prior to Dec 31st) and he won't have to report the gain.
Married filing separate is more expensive.. but probably less than $1000.. and that depends on what your income is this year anyway... Less income = less cost.
Now I am not a tax expert but I believe you can get around it this way.
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So it's on the converted value of the loan? I see, then the higher USD/NOK rate makes it worse.
Sell it to your parent's before new year, then move just after Jan 1st? If you don't have a job this shouldn't be a problem right? Your husband could always move before if he has to for some reason, just make sure the person on the apartment paperwork isn't tax liable in the US in 2015..
Wow. I'll look into getting a loan from my parents to pay the bank loan before Christmas, and then I can sell the apartment and pay my parents back... If they're willing :-/ If not, then perhaps I could refinance it or change banks right before selling?
When I was told about this I was told "refinancing doesn't count!"
Probably even borrowing money from your Parents is not clear cut.. Your still paying off a loan with less dollars than you borrowed.
There are international tax expert.. KPMG is one. It might be worth spending a couple of hundred dollars to make sure your strategy will work.
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So it's on the converted value of the loan? I see, then the higher USD/NOK rate makes it worse.
Sell it to your parent's before new year, then move just after Jan 1st? If you don't have a job this shouldn't be a problem right? Your husband could always move before if he has to for some reason, just make sure the person on the apartment paperwork isn't tax liable in the US in 2015..
Wow. I'll look into getting a loan from my parents to pay the bank loan before Christmas, and then I can sell the apartment and pay my parents back... If they're willing :-/ If not, then perhaps I could refinance it or change banks right before selling?
When I was told about this I was told "refinancing doesn't count!"
Probably even borrowing money from your Parents is not clear cut.. Your still paying off a loan with less dollars than you borrowed.
There are international tax expert.. KPMG is one. It might be worth spending a couple of hundred dollars to make sure your strategy will work.
yeah, I can see how the IRS would foresee that one and make a rule against it. Safest is probably to sell it to your parents, at market value, so it's totally off your balance sheet by dec 31st. Then your parents can sell it whenever they want and pay back any loan they had to take to buy it. But as flyboy said you might need to talk to an international tax expert. Unfortunately they're often not cheap.
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When I was told about this I was told "refinancing doesn't count!"
Probably even borrowing money from your Parents is not clear cut.. Your still paying off a loan with less dollars than you borrowed.
There are international tax expert.. KPMG is one. It might be worth spending a couple of hundred dollars to make sure your strategy will work.
I've asked my parents to go with me to the bank and see if there's any way they could take over the loan for me (basically buying the apartment). No matter how I solve it, I suspect it will get messy. I'm looking into KPMG now :)
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I think if you can get your name off the mortgage, and your Husband files MFS THIS year you should be in the clear.
The problem will be if they sell it at a later date and you make a real profit.. How will they give you the money without it becoming a taxable event in the US?
I would put it on the market and see if you could complete the sale by the end of the year.
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I think if you can get your name off the mortgage, and your Husband files MFS THIS year you should be in the clear.
The problem will be if they sell it at a later date and you make a real profit.. How will they give you the money without it becoming a taxable event in the US?
I would put it on the market and see if you could complete the sale by the end of the year.
It looks like selling to my parents is the best option right now.. And I would make profit if I sell to them at market value. Selling before Christmas is highly unlikely - it's a slightly tedious process to begin with and likely a dead market .
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I think if you can get your name off the mortgage, and your Husband files MFS THIS year you should be in the clear.
The problem will be if they sell it at a later date and you make a real profit.. How will they give you the money without it becoming a taxable event in the US?
I would put it on the market and see if you could complete the sale by the end of the year.
Just an aside, if this is the case the parents can give them $56,000 per year under the gift tax exclusion ($14k from each parent, to each of the husband+wife).
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I think if you can get your name off the mortgage, and your Husband files MFS THIS year you should be in the clear.
The problem will be if they sell it at a later date and you make a real profit.. How will they give you the money without it becoming a taxable event in the US?
I would put it on the market and see if you could complete the sale by the end of the year.
Just an aside, if this is the case the parents can give them $56,000 per year under the gift tax exclusion ($14k from each parent, to each of the husband+wife).
I am learning so much today.. This has been both the most stressful and informative forum thread I have ever participated in! Thank you so much :)
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I think if you can get your name off the mortgage, and your Husband files MFS THIS year you should be in the clear.
The problem will be if they sell it at a later date and you make a real profit.. How will they give you the money without it becoming a taxable event in the US?
I would put it on the market and see if you could complete the sale by the end of the year.
Just an aside, if this is the case the parents can give them $56,000 per year under the gift tax exclusion ($14k from each parent, to each of the husband+wife).
Is that true when the gift is from a foreigner?... I don't know the answer but I would want to be sure.
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I pretty much live amongst the three cities of Houston, Austin, and San Antonio, so hopefully I can try to answer some Texas-specific questions when they come up :)
For now, I would say... you probably could safely sell your heavier articles of clothing - it really doesn't hit "winter" here unless you're in very North Texas.
Savings/Tax thoughts: If you and husband don't have an income yet, you probably want to throw some money into a Roth IRA ($5,500K max for each person) since this is the kind of retirement account where you put in post-tax money first, and later don't have to pay taxes on the gains, I think. You can withdraw the principal amount any time, but would be penalized if you tried to withdraw the gains before age 59.
Texas/life: STAY HYDRATED from March through November! Seriously, some days get really hot, and you don't want to go outside without water (in your own reusable water bottle, of course). Use sunscreen so you don't get sunburnt. Look into some gas-efficient vehicles, because you're probably going to have to (unfortunately) drive some places, especially if you're just starting out. Most of our cities don't have great public transit, unfortunately.
$500 for a 3BR is insanely awesome! I have no idea where you're at, and COL in Texas is relatively low, but I bet you could rent out a room or two and almost be landlords (so long as you read your leasing terms and make sure that's ok)
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I pretty much live amongst the three cities of Houston, Austin, and San Antonio, so hopefully I can try to answer some Texas-specific questions when they come up :)
For now, I would say... you probably could safely sell your heavier articles of clothing - it really doesn't hit "winter" here unless you're in very North Texas.
Savings/Tax thoughts: If you and husband don't have an income yet, you probably want to throw some money into a Roth IRA ($5,500K max for each person) since this is the kind of retirement account where you put in post-tax money first, and later don't have to pay taxes on the gains, I think. You can withdraw the principal amount any time, but would be penalized if you tried to withdraw the gains before age 59.
Texas/life: STAY HYDRATED from March through November! Seriously, some days get really hot, and you don't want to go outside without water (in your own reusable water bottle, of course). Use sunscreen so you don't get sunburnt. Look into some gas-efficient vehicles, because you're probably going to have to (unfortunately) drive some places, especially if you're just starting out. Most of our cities don't have great public transit, unfortunately.
$500 for a 3BR is insanely awesome! I have no idea where you're at, and COL in Texas is relatively low, but I bet you could rent out a room or two and almost be landlords (so long as you read your leasing terms and make sure that's ok)
OK, a Roth IRA. I've been curious about those types of plans, and it sounds like a good idea to factor them into our future plans. And yes, I am very happy about the $500 deal on the house. It's fairly central in San Antonio (inside the "loop", northeast of centrum, if that means anything to you) and my husband is renovating it right now with his father (his parents own it) while getting paid to do so.
Sunscreen is a given. I usually use 50 SPF in the summer here in Norway! I really hate to be stuck in a car, but I suspect I'll come to love it during those hot summer months everybody talks about :)
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I am very happy about the $500 deal on the house. It's fairly central in San Antonio (inside the "loop", northeast of centrum, if that means anything to you) and my husband is renovating it right now with his father (his parents own it) while getting paid to do so.
That sounds like a really good location! Once you move in and evaluate how much of the house you're actually using and how comfortable you'd be with sharing the space, I can't imagine that you wouldn't be able to get a renter to rent out 1BR for that $500/mo price tag.
Also, rejoice! Texas has no income tax.
The general approach to savings in US-specific type accounts is probably:
- (0. Have some liquid cash in a checking account since you guys don't really know what expenses look like yet and are paying a lot of start-up costs, I imagine, like buying a car, etc.)
- If your husband is working for a corporation, they likely offer a 401K with a company match of his contributions to the traditional 401K up to a certain percentage. Definitely have him contribute up to that company match - that's straight up free money.
- Pay down any debts with over a 5-6% interest rate.
- Max out Roth IRA contributions (especially if you guys are expecting that your current salary is lower than future salary).
- Contribute up to federal max for the traditional 401K ($18,000 for 2015, I believe).
- Open a personal investment account that gets taxed normally for the remainder of your savings.
This isn't a hard and fast rule or anything, but a more "general" list to get you started on understanding the types of accounts here in the US. As you learn more about the system and learn more about what your earnings and expenses will look like, you can of course tweak it.
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The general mustachian advice about maxing out various tax-advantaged accounts is great but...
If you aren't super-sure you are staying in the US forever it might be worth waiting a year.
You don't want to move back in a year and spend the rest of your life having to file US tax return for a few $1000 locked in a US retirement account.
If your husband is American and you intend to stay then this may not apply to you.
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My wife is a green card holder. One thing that helped her considerably was finding a group of women from her home country to chat with. They meet regularly at each other's homes and share food and just talk things over. (I suspect they mainly complain about their American spouses!)
I would strongly suggest you hunt up a few Norwegian women. Also, she follows blogs set up by people of her nationality who live in the US, where they discuss how to handle common concerns.
As for the heat, it's all a matter of getting used to it. I moved from northern US to Florida, and had no problem with the heat after a few weeks. Get out in it as much as possible, and just get used to it. Of course this only holds true if you are of normal body weight, and no health problems!
Re the 'problem' of socialism. Tell people that Norway is just like Alaska, a super-rich oil giant, and government pays for all this stuff out of excess cash from the oil wells. They might understand that, and it is pretty much true... :-)
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Tell people that Norway is just like Alaska, a super-rich oil giant, and government pays for all this stuff out of excess cash from the oil wells. They might understand that, and it is pretty much true... :-)
Although they might not understand why they pay 50% income tax and 25% sales tax ;-)
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Tell people that Norway is just like Alaska, a super-rich oil giant, and government pays for all this stuff out of excess cash from the oil wells. They might understand that, and it is pretty much true... :-)
Although they might not understand why they pay 50% income tax and 25% sales tax ;-)
Is that literally true? I'll admit to not knowing the specifics of tax policy in Norway!
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My wife is a green card holder. One thing that helped her considerably was finding a group of women from her home country to chat with. They meet regularly at each other's homes and share food and just talk things over. (I suspect they mainly complain about their American spouses!)
I would strongly suggest you hunt up a few Norwegian women. Also, she follows blogs set up by people of her nationality who live in the US, where they discuss how to handle common concerns.
Pah, don't do this. Don't be one of those people that cling to the old language and culture (and who eat gross norwegian food..) Rip the bandaid off and embrace your new homeland. When people ask about Norway say, as I do, that you escaped an oppressive communist regime. I imagine this will be even more popular in Texas than up here!
re taxes: I'm not quite clear on it either, but I believe you'll be close to 40% with a pretty average salary. With a professional job 50% sounds likely. And sales tax is indeed 25%. Cap gains tax is also 27%.
This table shows tax percent at levels of average wage. There are countries that looks worse, although this does not included government "fees" which Norway loves to use instead of taxes.
https://no.wikipedia.org/wiki/Skatt_i_Norge#cite_ref-Tax_Database_8-1
This is what "free" healthcare and college looks like..
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Our last five tax returns (total tax/ total household income):
2010: 14%
2011: 16%
2012: 17%
2013: 24%
2014: 23%
The increase reflects an increase in salary. Theoretically, the tax rate is 27-50%, but there are so many deductions that noone pays that.
Yes, there are tax on consumer goods, it varies between 8 (transport and culture), 12 (food) and 25 % (other stuff). A lot of (but not all) municipalities have property tax. In those that do, it varies between .2 and .7 % of home value, and most municipalites have a base threshold. Our house is worth around $250 000, and we pay property tax on $100 000. The cost of water and renovation comes in addition, of course.
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Our last five tax returns (total tax/ total household income):
2010: 14%
2011: 16%
2012: 17%
2013: 24%
2014: 23%
The increase reflects an increase in salary. Theoretically, the tax rate is 27-50%, but there are so many deductions that noone pays that.
Yes, there are tax on consumer goods, it varies between 8 (transport and culture), 12 (food) and 25 % (other stuff). A lot of (but not all) municipalities have property tax. In those that do, it varies between .2 and .7 % of home value, and most municipalites have a base threshold. Our house is worth around $250 000, and we pay property tax on $100 000. The cost of water and renovation comes in addition, of course.
I find it odd that food would be taxed more heavily than transport and culture. Any idea why?
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[/quote]Pah, don't do this. Don't be one of those people that cling to the old language and culture (and who eat gross norwegian food..) Rip the bandaid off and embrace your new homeland. When people ask about Norway say, as I do, that you escaped an oppressive communist regime. I imagine this will be even more popular in Texas than up here! [/quote]
:-) You certainly have a point, and I agree to an extent. But, I know my wife got pretty lonely.
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A little update:
I disappeared from this thread due to the massive shock of a possible huuuuge tax. Once I realised that the threat was very real my focus shifted from the practical sides of moving, and I have been in tax crisis mode the last days. I have spent my time researching IRS's webpages, talking to my parents and in-laws and even a tax consultant specializing in international tax.
I found that you were absolutely right about the currency transaction gain tax, and that I might have to pay around $20 000 to the IRS if I sell my apartment after Christmas!!! My husband might have done his taxes the wrong way earlier by not reporting my Norwegian income, and this situation is equally bad for him, not just me. But thanks to this forum we found out in time, and have now taken several (legal) measures to avoid this tax. I will not be going to Texas this Christmas (which sucks so much!!), and I will sell my apartment to my parents before the end of the year. That way I will pay back the mortgage before I become a US resident for tax purposes. We still haven't talked to the bank, but we've looked into ways of doing it. My husband and I will proabbly sign a prenuptial agreement (should have done that before we even married!), and he will have a statement on his 2015 tax return saying that he is filing his taxes unaware of any international income his wife might have (which is true - he really is clueless about my finances).
Summed up: You might have saved me a bill of $20 000! THANK YOU!
And since I'm on this tax rant and have been going through my Norwegian taxes: I paid 26,8 % tax in 2014 (on an income of 518 000 NOK), but expect to pay less this year due to the tax benefits from having a mortgage in Norway (there are some upsides).
And lastly: Norwegian food is not gross :) I have some favorites that I will take with me for sure: crisp breads (I make my own), sour cream porrige, Norwegian pancakes, fish burgers, school buns and meat cakes. Others will be missed dearly: Macrell in tomato sauce (in a tube), fish balls in curry sauce, salt-dried lamb, lamb-and-cabbage.. :)
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so you are going to pay my 10% for saving you the $20k in tax right?...;)
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I love this forum. Seriously. You guys saved us from deducting the full amount of a tIRA last year when we weren't eligible.
Honestly, this forum is so cool.
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Update # 2: My apartment is sold and I have entered (and exited) the US successfully in 2016. We made quite a nice profit on the apartment: I bought it for 2 090 000 NOK in October 2014, and sold it for 2 620 000 this january (after first selling it to my parents, and then selling it for them trough a "power of attorney consent agreement"). I sold it to my parents at a quite high price, and managed to sell it for them at the exact same price. That is super good news, as they would have been taxes on any gains or losses made on the sale. The real estate agent fees eats up some of my profit, leaving me with an actual profit of 440 000 NOK (about 50 000 USD in these horrible NOK/USD-currency times). Because of the exchange rate I'll keep most of my money in Norway for now, and will even tuck some of it into an low-cost (mutual) index fund here. I am not planning on living off these savings alone in TX, so I think I can safely leave some money behind in Norway. I plan to keep an eye on both the value of my account and the exchange rate, and to transfer the money once I hit a sweet spot on both.
I've finally been to San Antonio! It was a lot of fun, and kinda overwhelming :) The transition to driving everywhere will be a challenge, as will having to navigate amongst blinking billboards everywhere (I saw a funny one outside a church: "Political correctness is just the liberals demand for compliance" - how can you put that up next to a highway and not distract innocent drivers?). Texas is not the dry desert I imagined, and so I'm really looking forwards to doing some gardening and learning more about the climate. Also kinda exited about the food! And the grocery stores... to me, they are like the best museums/galleries ever. Totally modern art :D
The currency rate between Norwegian Kroners, NOK, and the US dollar is horrible (for me) right now, but that could also be a good thing. I was expecting "everything" to be less expensive in Texas, but most prices were kinda high when converted to NOK. I'm hoping this will reset some of the lifestyle inflation that I've fallen victim to over the last years. And it makes me very motivated to find a job ASAP, no matter what the job is initially. I've quit my Norwegian job, but the long resignation period means I'll stay in Norway until April.
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So glad to hear an update! It sounds like everything is working out as best as could be hoped for. How exciting. And I love the description of grocery stores as modern art... lol! Save yourself some times and inches on your waist and shop the edges of the grocery store =P Most of the products in the middle aren't even worth making eye contact with!
Re: the billboards. That is fantastic. I saw some similarly amusing ones when I visited Mississippi. I hope there's a tumblr collection of them somewhere!
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Welcome to Texas! Yeah, the long drives do wear on ya. Grocery stores are fun, though! Take Braken_Joy's advice and do try to shop the outer edges - it's where they have the actual grocery essentials you came in for - produce, dairy, fresh meats. If you go to the inner aisles, you will probably find lots of items to point and laugh at. "Do Americans really eat THAT?"
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Great,
Now you probably already know this by now but the first year you submit taxes in the US you will have to file an "FBAR" form. This simply states that you have a foreign bank account. The penalties are $10,000 if you happen to forget.
Also if you have a pension back in Norway and you Know the value by "readily available means" then you have to declare that on IRS form 8893 if the value exceeds $100,000 for a married couple. The penalty for not doing so?.. You guessed it $10,000 for every year you didn't file the form.
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Great,
Now you probably already know this by now but the first year you submit taxes in the US you will have to file an "FBAR" form. This simply states that you have a foreign bank account. The penalties are $10,000 if you happen to forget.
Also if you have a pension back in Norway and you Know the value by "readily available means" then you have to declare that on IRS form 8893 if the value exceeds $100,000 for a married couple. The penalty for not doing so?.. You guessed it $10,000 for every year you didn't file the form.
Thanks for the heads up. I am so scared of the IRS after the phantom gain spook - I'll be super careful with my taxes from now on!
I recently checked my pension, and it is not over $100,000 unfortunately. It's not too bad, though, maybe $70,000. Once I know if this really is a permanent move, I can transfer it to the US.
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So glad to hear an update! It sounds like everything is working out as best as could be hoped for. How exciting. And I love the description of grocery stores as modern art... lol! Save yourself some times and inches on your waist and shop the edges of the grocery store =P Most of the products in the middle aren't even worth making eye contact with!
Re: the billboards. That is fantastic. I saw some similarly amusing ones when I visited Mississippi. I hope there's a tumblr collection of them somewhere!
Yeah, I'll have to be quite restrictive with the inner isles. I do love the selection, tough.. miles of slightly different variations of mac'n'cheese - stuff like that is just extremely exotic to us minimalistic Scandinavians ;)
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Yes the reporting threashold is $100k for a married couple.
You have to take the value in Norwegian money and then use the published exhchange rate (on the IRS website) at the end of the year to get the dollar value.
its not a question of being super careful.. They can make a rule up (like the FBAR and the foreign pension thing) and you have no way to know there is a rule that affects you.
Then you get fined (with penalties that are much higher than for tax evasion) for failure to declare.. All very fair and resonable.. NOT!