@stmichael6 Thank you for your quick reply.
As I understand your situation ---- you should be able to exclude your 2023 earned income from April 2023 ( starting from the first full day in Norway , assuming you entered Norway directly from US to Norway ) till 12/31/2023. You will be eligible to file post meeting the Physical Presence Test --- around April 2024. I would have expected that all your wages up to the maximum allowed for the tax year 2023 would be eligible for exclusion.
As I mentioned before if your spouse ( an NRA ) joins you in filing jointly --- yes you have to enter a dummy Tax ID for her during the preparation phase, choose file by mail, print the forms, replace the dummy TaxID with NRA. Then download and fill out W-7 ( requesting a ITIN for p[ruposes of filing your return ) include all the documents required for the W-7 ( see instructions at www.irs.gov ).
Then if your spouse has income, you have to prepare , both sign and date a request that you both want her to be treated as a resident for the tax year. She is married to a citizen.
On the subject of capital gain, please look at article 10 ( I think ) of the US-Norway tax treaty to determine if only Norway or both get to tax the capital gain passive income. This is based on source of the income. Cannot give you more guidance on this till you tell me more about the capital gain and the assets involved.
However, if both Norway and US tax the same income ( whether unexcluded earned income or passive income), under the double taxation clause US will allow a credit for the taxes paid ( but is indeed limited as I mentioned above .
Is there more I can help you with ?
pk
